HELOC on non-warrantable condo

[Mike Day]

I'm considering purchasing a condo that is non-warrantable (not eligible for conventional financing) because one owner owns too many units and there is a pending lawsuit against the HOA. My idea is to purchase it in cash and then, instead of doing a cash-out refi, open a HELOC. I have been told that banks don't look into condo documents when opening HELOCs and won't know or care about the obstacles to conventional financing. Has anybody done this/know if this is true?