QUESTION
How can I sell my income restrictive unit in the city of Pomona CA?
Asked on Sep 19th, 2015 on Real Estate - California
More details to this question:
I bought a moderate income unit back in 2004. I have been trying to sell it in the last 2 years. It is almost impossible. I have tried 3 different agents. I paid 194000 for the unit, the current market value is 250000. We have gotten cash offer for this unit, but the city will not allow us to sell it. We have dropped the price all the way to 188000, and still no one could qualify. They either have too much income, or they simply don't qualify for the loan since they don't have enough down payment. I currently do not reside in California, and my family is going through a lot of hardship in the last couple years. This is our only asset aside from our current home. But it is nearly impossible for us to liquidate. My wife and I have no credit or income right now to take A second mortgage on it. We have a lot of equity in this unit, but we can't utilize it. I don't know if there are ways around this, please help
2 ANSWERS
You need to have a real estate attorney read that deed of trust and the restrictions on sale, both to force the city to comply and to look for a loophole for you to make a little money on the sale.
Dana Sack
Answered on Sep 20th, 2015 at 9:44 PM
Estate Litigation Attorney serving Redlands, CA
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Price Law Firm, APC
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You should contact an attorney to review the covenants of your unit and determine how best to proceed. Any unreasonable restriction upon alienation of the property is unlawful, but income restrictions may be upheld. It depends on the situation.
Alternatively, you may just have to wait for the right buyer. The problem is that lenders have put such restrictions on income ratios for approval of loans that low income buyers may not qualify for financing. Your unit may be worth more, but a low income buyer wouldn't qualify for the financing required to buy the unit.
Answered on Sep 20th, 2015 at 2:02 PM