I recently bought a medium sized lot in a city. The neighbor built across the lot line in several spots (1-6′), but I knew that before I purchased. We can redo the lot lines, but in this instance, it would mean being able to build a single family vs a 4 family. Question is: would I have problems getting a loan in the future on the property with an existing encroachment? I am willing to write a letter of permission for them, but I am unsure of implications. Ideally I would build a single family for myself and 3 apartments in the rear and keep it indefinitely, but I also think about the ability to sell in the future. Thanks for your insight.