When should I escalate this condo file to the lender?
Escalate if: you've identified a serious blocker (litigation, delinquency, transient use, major repairs) that will likely affect lending decision; the file has been held up for more than 10 days without clear resolution plan; or you need early guidance on whether the lender will fund the file given specific project facts. Early escalation prevents wasted work on files with serious issues.
Why it's not always simple
Escalation timing depends on the severity of the issue and your certainty about it. A file with minor document gaps doesn't need escalation. A file with disclosed litigation should be escalated once the litigation is confirmed. The judgment is whether the issue is lender-blocking or just processor-complicating.
The bigger issue: not escalating files with serious blockers wastes weeks of work before the lender says "this won't approve."
What people usually miss
People often try to solve file problems before escalating to the lender. What usually gets missed:
- Lender should be involved in blocker decisions early, not after weeks of work
- Some blockers are absolute deal-stoppers — lender should confirm early
- Early escalation prevents wasted documentation collection on files that won't fund
- Lender can often provide guidance on workarounds or conditions early if asked
- Waiting to escalate until "all documents are ready" often means waiting until it's too late to fix issues
- Not escalating file delays beyond 10 days suggests a bigger problem that lender should know about
The real problem: people often do major file work before confirming the lender will even fund the file given project facts.
Example
A processor has a file with a disclosed $200K special assessment coming and significantly low reserves. She thinks "this is a big deal" but spends two weeks gathering all documentation before escalating to the lender. The lender reviews and says "we can't fund this given the special assessment risk." The two weeks of work was wasted because the lender should have confirmed the special assessment issue was fundable before documentation collection became extensive.
If this is a real file
If you identify a serious blocker (litigation, major repairs, unusual delinquency, special assessment, short-term rental policy), escalate to the lender within 48 hours and ask: "Can we fund this file given this issue, or is this a deal-stopper?" Early guidance prevents wasted work on unfundable files.
If you want to understand whether your file has blockers that should be escalated early and what the lender is likely to require given those blockers, you can run a 60-second pre-screen.