Purchase Multifamily that was financed with USDA Loan

[Matthew Reid]

Bigger Pockets Team, I have been speaking with my wife's family member recently about some of the property that her and her husband had purchased back in the 80's.  She mentioned this one 58 unit apartment complex that she has been trying to sell for years but for some reason she cannot sell it.  She was telling me that back in 1985 they purchased the property with a USDA loan on a 50 year amortization. The loan has a penalty for paying off early.  Several years after purchasing the property the USDA came out with another benefit which allowed them to take accelerated depreciation over 35 years as apposed to the 50.  She was telling me that because of these two situations she is unable to sell the property without paying large fees and losing money.  Apparently, on top of the fee she has to pay for selling early she has to pay back the difference in depreciation that has already been claimed.   This is all third hand information considering that she is quoting her accountant that told her it is not wise to sell because of these reasons.

I was wondering if anyone out there has purchased a property similar to this where the previous owner is locked into a USDA Loan or something similar.  Is there anyway we can get her out from under this property, without having to pay large fees, that she no longer wants to own?