Lender policies put condo owner in real estate pickle

Lawsuits, high renter ratios impede successful sale

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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....