Underwriter issue with Oakland Duplex

[Bruce Palomarez]

Currently in Escrow to sell my Oakland duplex. The buyer is looking to move into one unit and his family into the other. This is an FHA loan and we are now past the 40 day mark and all contingencies have been removed.

On the day before we are due to close the underwriter wants a guarantee that the tenants will be vacated in 60 days. Considering the rent control laws, I myself cannot issue the owner move in notice because I am not the one who wants to move in. The buyer can't issue any notice because he is not on title. Any advice/experience with an issue like this?

[Chris Mason]

Yeah, this is a legit glitch in the matrix in Oakland where reality doesn't really line up with what you see on the ground.

- City ordinance says the OMI eviction process can't start until the owner who will actually move in initiates it, and it takes a "minimum" of 60 days. 

- Mortgage guidelines want owner occupants moved in within 60 days.

- ???

You really can't buy tenant occupied real estate in Oakland, as an owner occupant, if your underwriter is going to be from Narnia or Detroit or whatever. You can't broker these ones, it has to be in-house & local underwriting, or exactly this comes up.

@Bruce Palomarez, it'll probably be resolved in a couple months. First the (presumably, out of state) underwriter must be educated on the fact that there is a state called California, and within that state is a county called Alameda, and within that county is a city called Oakland, and within that city there is a city council, and periodically that council has passed various ordinances, etc etc.