Master HOA Insurance needed for refinance?
I was in process of refinancing and in necessary documents needed to submit, one is 'HOA Master Insurance'.
My subdivision (Planned Unit Development, Single Family detached homes) is half built and the builder went out of business last year. The empty plots were taken over by a bank and hence an HOA could not be established/ maintained because the covenants state that HOA can only be transferred from Declarant (developer) to Elected HOA Committee when 90% of the plots are built. But the Declarant is bankrupt and out of picture even though his name still stands on county recording. So in short, the HOA is 'Administratively dissolved' as per state SOS and the HOA is not current on a Master Insurance.
Our subdivision does not have any common areas like clubhouse, pools or game courts, etc. We do have common parks/ gazebos in the subdivision.
My question for experts: Is a Master HOA Insurance a necessity for refinancing? I've asked this question to the lender but not yet got the reply.
Thanks for your inputs!