Lawsuit at Alta Lofts – Loft Litigation

More than 20% of currently listed loft buildings in the Downtown Los Angeles area are currently or recently engaged in some kind of lawsuit or litigation. Alta lofts homeowners association recently disclosed that it may soon be embroiled in litigation in the near future.

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Because these claims and disclosures are written by lawyers, and you might say “salesmen” for the law firms, they are careful to disclose the responsibilities of the homeowner’s association representatives to investigate and make repairs, but perhaps the letter neglects to include the responsibility to weigh the pros and cons of claims and litigation, including such drawbacks as inspection costs, legal and potential litigation costs, cost of possible reduced home values for up to several years, potential delays in selling properties, possible lending and refinancing issues and possible (albeit rare) loss or counter suits from developers, as well as other unexpected costs that could arise.alta-lawsuit-02

Also embroiled in this type of HOA vs developer legal action is the popular Barker Block lofts. Buyers often have difficulty getting a copy of the full litigation documentation, which also can cause some potential home buyers to get cold feet and place downward pressure on prices during the lawsuit.

There are many issues surrounding these common claims and lawsuits by homeowners associations against builder developers.  Potential buyers and sellers should consult with attorneys to understand the lawsuits, and should consult with Downtown specialist realtors to learn the practical effects of litigation on the real estate market and home values of the affected properties.

Get free information on Downtown lawsuits and litigation. Fill out the online form.

Alta Lofts Building

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Loft Lending Problems – Downtown Los Angeles Area Home Financing Issues

While today may be the very best time to buy a home while competing buyers are dormant for the holiday season, there are few issues to be aware of regarding financing.

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Most Downtown Los Angeles lofts are industrial or commercial conversions that are special exceptions under the City of Los Angeles Adaptive Re-Use Ordinance. Many residential lenders will completely fail, delay or charge additional points to try to handle loft financing.

More than 25% of currently active DTLA lofts and condos have current or recent litigation that can affect the livability, financing ability and investment potential of the homes.

Out of area lenders, especially out-of-state lenders will have more delays. The paperwork is often processed incorrectly and must be re-done. Just this week, a buyer who wanted to move on a weekend was forced to wait until the following week because her lender and notary in Texas signed a document in a way that was unacceptable in California.

New consumer protection laws are also causing bureaucracy delays.   If a buyer needs to make a change to a signed mortgage agreement, it may now cause an extra 3-day delay for each change to the contract.

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Keeping these issues in mind, most real estate and finance experts now agree that interest rates and monthly payments will be going up.  Savvy buyers will take advantage of today’s low interest rates for the lowest monthly payment.

Because of the warm climate, and the fact that most Downtown Los Angeles buyers usually have no children in school, the home buying season starts very early in Downtown. Most prospective home buyers wait until after the holidays, and then there is a mad rush starting January 2. All of these buyers become competition for each other, driving up the price.  The most dedicated home buyers will start in October through December as to take advantage of less competition, allowing the placing of lower initial offers and saving money on the final home price.

Get a list of loft lenders. Fill out the online form:

Find homes in Downtown Los Angeles:

LOFT & CONDO LISTINGS DOWNTOWN L.A.  [MAP]

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SEARCH LOFTS FOR SALE UNDER $400,000  |  $800,000,  |   $30,000,000
Browse by Building  |  Neighborhood  |  Size  |  Bedrooms  |  Pets  |  Parking

Corey Chambers Realty Source Inc BRE#01889449

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