Open Lawsuit Against HOA

[Manuel Torreira]

I bought my first rental condo a year ago and I am trying to do a cash-out refinance on my unit. However, the HOA has an open lawsuit against them due to a fire that took place in another building two years ago and a homeowner is suing the association for it. Therefore, traditional banks will not lend on this property or provide any refinancing options. I have been told by the property manager that "from a legal standpoint the only information that can be provided is that a fire took place, and there is an open claim for it." They have began making the repairs to the building but that's about as much information as I have been given from the HOA.

As an owner of one of the units, am I entitled to a copy of the lawsuit?

What are my options?

Is my only option to wait until the lawsuit is finalized before I can a) buy another unit in this property or b) refinance the one I already own?

Should I be looking for other methods of financing that don't involve traditional banks?