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What is the name of your state?CA

I signed purchase aggrement contract in mid May and opened 45 day escrow to close on June 29th. On the 26th I was told by my lender that they received a report on a pending lawsuit between the HOA and the builders of the community and that the loan was not going through afterall. After investigating and reading the report I come to find out that there is a huge lawsuit pertaining to all common areas and some homes. I spoke to my agent about why this was not disclosed in the sellers transfer disclosure and she told me that knowone was aware of it (unlikely) but that it was mentioned in the HOA papers that I signed for( lets be real thought it was only rules and by laws). Now I am currently trying to cancel escrow but the seller won't sign off, and my good faith deposit is wrapped up (5,000) until she does. My agents are also not coperating and are trying to push me to find a lender who will loan me the funds. How do I get out of this and get my money back, appreceiate any advice. Oh by the way her house is back on the market.

[HomeGuru]

Originally Posted by Diego04

What is the name of your state?CA

I signed purchase aggrement contract in mid May and opened 45 day escrow to close on June 29th. On the 26th I was told by my lender that they received a report on a pending lawsuit between the HOA and the builders of the community and that the loan was not going through afterall. After investigating and reading the report I come to find out that there is a huge lawsuit pertaining to all common areas and some homes. I spoke to my agent about why this was not disclosed in the sellers transfer disclosure and she told me that knowone was aware of it (unlikely) but that it was mentioned in the HOA papers that I signed for( lets be real thought it was only rules and by laws). Now I am currently trying to cancel escrow but the seller won't sign off, and my good faith deposit is wrapped up (5,000) until she does. My agents are also not coperating and are trying to push me to find a lender who will loan me the funds. How do I get out of this and get my money back, appreceiate any advice. Oh by the way her house is back on the market.

**A: if you read all the HOA docs including the last 2 years of meeting minutes, I am sure that something is there concerning the builder problems.