Mortgages and setback violations
This is related to my question about the setback requirements on a lot I may purchase, which is discussed in the "Building and Setbacks" thread. In the subdivision there are unclear setback requirements for the lot - they are either 10' or 30' from the side street (it's a corner lot). This is a homeowner deed restriction, there is no county setback.
If, hypothetically, I decide to interpret the setback as 10' (as the title co and surveyor have) and build a house at that setback, will a future potential buyer face mortgage problems trying to buy the house?
Will mortgage companies finance existing homes that (may) violate deed restrictions? Will it show up as an exception on the title policy?
I have not decided to buy the property or build the house, and I have been consulting with an attorney on all of these issues. I'll also be asking my banker these mortgage questions, too. Thanks for your help.
assuming the risk of being sued by a neighbor