Hi r/RealEstate,We are under contract for a house in the bay area – our offer got accepted last week and are still under contingency period (appraisal, inspection, loan). Everything has been going smoothly so far except the preliminary title report came back 2 days ago and it shows an undisclosed deed restriction, apparently unknown to seller.Here is the history of the house based on the preliminary report and my own sleuthing of public records through county search and RE websites:*Built in 2006, with easements and CC&Rs recorded *Amended redevelopment plan in 2007 – no mention of deed restriction *Affordability restrictions on transfer of property, resale, and refinancing – executed by redevelopment agency of the city (now dissolved) and buyer on 2008; the notice went out on the same date but listed as a separate item. It seems that the restriction was also recorded on the same day that the buyer bought the house from the developer. *To my knowledge, the house was foreclosed to lender in 2010 (not in prelim report but shows up in county records search and Zillow/Trulia property history) *The house was sold to current owners (sellers) in 2011 (not in prelim report but shows up in county records search and Zillow/Trulia property history) *The sellers refinanced in 2014My agent called up the listing agent to ask about the deed restriction and she wasn’t aware of it until it was brought up by my agent, neither were the sellers. They are all still working on getting a resolution/clarity and I’m just sitting here twiddling my thumbs.My agent thinks that since the was house went into foreclosure, the affordability restriction should have been wiped out. My endless Googling says similar things but I’m obviously not a RE expert so what do I know. I am patiently waiting for positive news however I wanted to post here and ask the question since I’m getting so anxious and can’t focus on anything else! What are your thoughts, reddit?P.S. We do not qualify as low/moderate income based on guidelinesTL;DR Does a foreclosure wipe out deed restrictions (affordability/low to moderate income)?