Lender policies put condo owner in real estate pickle

Lawsuits, high renter ratios impede successful sale

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

DEAR BOB: I've been reading your articles for at least five years and have learned so much about real estate. Once, when the editor left your column out of the newspaper, I phoned and strongly complained. The editor never made that mistake again. But now I need your help. I recently sold my home tax-free, thanks to Internal Revenue Code 121, which you explained many times. However, I am now considering buying a lovely townhouse in a brand-new development. Thanks to my home sale, I have the cash to buy the townhouse without a mortgage. But you often suggest home buyers obtain a mortgage even when they can afford to pay all cash. Why? – Evelyn W. DEAR EVELYN: Thank you for your kind comments. The reason I suggest not paying all cash for a home, especially a brand-new condo or townhouse, is that it could be a very risky situation, and I don't want you tying up a large portion of your assets. There are often major construction defects in new condominium and townhouse developments....