Oct 27, 2009

Tip 36-2009: Short Sales and the First Time Buyer's Deadline

I am suggesting that everyone representing a First Time Homebuyer be cautious of the November 30 deadline, especially if the property selected requires short sale approval. If the first time buyer wants to be sure they can close by November 30, 2009, I would caution choosing a property which requires short sale approval due to the uncertainty of how long it takes for short sales to be approved by the lender. There is just no way to guarantee the short sale approval will happen in time. Accordingly, I would suggest that first time buyers not enter into a new contract to buy a short sale property if they want to be certain of closing by the November 30 deadline and receiving the $8000 credit. There probably are exceptions but just be careful. Also, as short sales are usually great values, even if the closing does not occur by the deadline, the short sale may still be a great buy without the $8000 credit. Finally we can always hope Obama sees the light and extends the First Time Homebuyer Credit program.

PS—Some lenders are saying any contract submitted after October 15 may have problems if you are trying to close by the November 30 deadline.

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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