Financing available for condos with litigation

If a condominium is in litigation, it is tough for a homeowner to refinance or potential Buyer to obtain financing to purchase a unit.   I thought it was impossible to obtain financing with a HOA in litigation as most  lenders will decline a loan application for a condo in litigation.  

I have found one lender that specializes in financing condos with litigation.   The interest rates appear to be at least 1/2 percent higher in rate than conforming rates (FNMA and FHLMC backed mortgage rates).    This seems like a reasonable tradeoff given the increased risk.    30 year fixed rate terms are also available.
  
There are condo's for sale at substantial discounts due to HOA litigation.   For some Buyers, it might present a potential opportunity to purchase a home at a substantial discount where the values might rebound significantly after the litigation is resolved.    The risks are high and each condo litigation issue needs to be thoroughly analyzed to determine the litigation issues, severity, longevity of the litigation, cost to remedy, potential assessments, attorney fees, repairs and its impact on quality of living....

Financing is available for condos with litigation in California, Silicon Valley, Santa Clara County and within cities such as San Jose, Santa Clara, Campbell, Los Gatos, Cupertino, Sunnyvale, Mountain View, Los Altos, and Palo Alto.  

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