{"id":730,"date":"2006-12-04T10:14:18","date_gmt":"2006-12-04T17:14:18","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=730"},"modified":"2009-03-08T07:54:04","modified_gmt":"2009-03-08T14:54:04","slug":"ask-the-broker","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/730\/ask-the-broker\/","title":{"rendered":"Ask The Broker: What if my lender won’t underwrite a land lease?"},"content":{"rendered":"

I am a buyer in a real estate transaction for a condo in California. I have been in escrow for the past 45 days but have been unable to obtain a loan due to the fact that the condo is on leased land which is due to expire in close to 30 years and the bank does not want to take the risk. There was a finance contingency. A 15 year loan would not be satisfactory to me and I may not even qualify for it. Can I cancel and get my earnest deposit back, thanks.<\/p><\/blockquote>\n

California says the condo is, I guess technically, not considered real estate because of the less than 30 year lease term. This may be a large exit door for you.<\/p>\n

Although I’ve run into this problem in Hawaii with clients, never in California. A practical solution is to find out if it’s possible to have the lease extended past 30 years. That worked for me many years ago. If the land owner will do this you’ll probably be able to obtain your loan.<\/p>\n

Otherwise, this gets into a legal judgment call. Does the contingency specifically say you’re to obtain a 30 year loan? Or did you leave that section blank? If the terms of the loan are not mentioned you are in a gray area, and might be better of consulting a real estate attorney.<\/p>\n

In the end, this may be much like a trick question on a test in school. My first comment will probably be your out. A five minute consultation with an attorney should solve this for you, and put a smile on your face.<\/p>\n","protected":false},"excerpt":{"rendered":"

I am a buyer in a real estate transaction for a condo in California. I have been in escrow for the past 45 days but have been unable to obtain a loan due to the fact that the condo is on leased land which is due to expire in close to 30 years and the […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,6,5],"tags":[],"class_list":{"0":"post-730","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":11252,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11252\/real-estate-broker-sued-for-secondhand-smoke\/","url_meta":{"origin":730,"position":0},"title":"Real Estate Broker Sued for secondhand smoke","author":"Robert Worthington","date":"February 10, 2010","format":false,"excerpt":"Alyssa Burrage was smoked out of her $405,000 condominium. Burrage has a history of asthma and has smelled smoke since she first viewed the unit on the south end of Boston in 2006 with her real estate broker.\u00a0 The broker assured Burrage the smoke she smelled was from a previous\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2010\/02\/burning_cigarette1-150x150.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":698,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/698\/win-win-a-recent-case-study\/","url_meta":{"origin":730,"position":1},"title":"Win-Win: A Recent Case Study","author":"Jeff Brown","date":"November 28, 2006","format":false,"excerpt":"Win-Win is a concept that's been popular for a few decades, especially in the real estate industry. Most of the time though it's been talk and not much walk. Since it supposedly refers to the buyer and seller in the same transaction, many would argue it's a cruel hoax, and\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1428,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1428\/ask-the-broker-buy-now-buy-later\/","url_meta":{"origin":730,"position":2},"title":"Ask the Broker: Buy now? Buy later?","author":"Greg Swann","date":"May 14, 2007","format":false,"excerpt":"This question concerns the Phoenix-area, but feel free to answer it for your own local market -- just tell us where you are.Which would be more attractive? The 8 month market or the 14 month? I'm literally on the CUSP of being able to buy and with kids already transferring\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":438,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/438\/blogoff-post-61-ask-the-broker-can-i-escape-without-taking-a-scrape\/","url_meta":{"origin":730,"position":3},"title":"Blogoff Post #61: Ask the Broker: How can I escape without taking a scrape . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"Here's a truly ugly problem:I'm being transferred and need to sell my house in a new subdivision. Unfortunately, the builder is still selling new houses. To make matters worse, I bought during the summer of 2005, and the builder has actually reduced its price from what it sold it to\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7456,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7456\/bloodhoundblog-radio-va-home-loan-tutorial-for-california-realtors\/","url_meta":{"origin":730,"position":4},"title":"BloodhoundBlog Radio: VA Home Loan Tutorial For California REALTORS","author":"Brian Brady","date":"March 11, 2009","format":false,"excerpt":"I recorded this webinar on March 11, 2009. The AUDIO IS HERE and will open in a new window.\u00a0 Listen along and click through the links as I discuss them: The zero-down loan limits for California counties How a purchase price, above the VA loan limit, might not require a\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1141,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1141\/countrywide-lendingtree-bear-stearns\/","url_meta":{"origin":730,"position":5},"title":"Countrywide, LendingTree and Bear Stearns Mortgage","author":"Doug Quance","date":"March 13, 2007","format":false,"excerpt":"The lending roller coaster is just starting to roll Most real estate professionals have to deal with an occasional unexpected consequence involving lenders... but not a string of them like this revelation. A client of mine decided to be a generous friend. He's not a wealthy man in the strictest\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=730"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/730\/revisions"}],"predecessor-version":[{"id":7378,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/730\/revisions\/7378"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}