Can’t Sell Condo In Chicago Due To Hoa Being Sued

Hi all, looking for advice here.

Some background:

I was planning to sell my condo unit in Chicago south loop early 2025(February or so) since I’ve left the state and have been renting it out since early 2023. The HOA had allowed me to do a 2 year hardship rental, but in the by-laws it states that no more can be requested after the 2 years. The tenant’s lease is until April 2025. She would love to stay, but can’t due to the HOA rules. Only way is for her to purchase to stay.

Now the issue: The HOA I just found out has been in a litigation lawsuit for the last 2 years(2022). An old valet company that they used to hire to service the garage in the building is suing the HOA for unpaid funds that the valet company owes their union for employee benefits. The company and union are on one side and the HOA is on another side, while their insurance is in the case stating that the requested funds are not covered by insurance. So, if the HOA loses, they would owe around $320k+ to the union/company. The HOA has a little over 1 million in reserves currently(as of early this year as far as I am aware).

My realtor looked at the last 2 years of the buildings listings on market. 18 have been listed, with 3 currently active, 1 on private, and 14 listings that have been cancelled. After talking with the building manager, she mentioned that quite a few lenders have refused to lend to buyers interested because the building is non-warrantied during the litigation. She said that id have to find a cash buyer, or find a buyer willing to go through a lender that specializes in non-warranties. Both of these I think are impeding me from selling in a timely manner.

I then started researching the litigation online(since the building manager said the documents are privileged to the board) and allegedly , the HOA terminated their contract with the valet in order to avoid paying the benefit expenses. additionally they allegedly told the owner of the valet to create a non-union company in order to avoid paying these expenses that was in their contract.

I am thinking of maybe counter suing the HOA? Is this something I have a case for since they didn’t act in my best interest and their current litigation is causing me to lose a sale on my unit?

Not sure what else to do, so need some good advice before I file for bankruptcy….and if anyone knows a good real estate attorney for this, please let me know. :(