May 6, 2010

Tip 20-2010: Tax Credit Deadline (Con't)

As discussed last week, any purchaser who wants to receive the tax credit must close and have the deed recorded by June 30, 2010. (Some Clerk’s offices close as early as 4:00 PM) The following suggestions should help meet this deadline:

(a)  Have the settlement attorney order the title immediately (do not wait until after the inspections are resolved or the loan is approved)

(b)  Any new surveys should be ordered now

(c)  Schedule the closing for earlier than June 30th (Allow at least two days for any closing delays and to record the deed), I would even recommend closing the week before

(d)  If the Seller is a short sale, make sure that the short sale lender knows about the tax credit deadline (I’m not sure if it will make any difference, but at least try for a quicker approval)

(e)  If the Seller is an REO, make sure the REO Seller will be ready on time (ex. Trustee deed recorded, HUD approved)

There are probably other concerns to insure that the June 30th deadline is met. Above all, make sure that all involved continue to focus on the deadline, communicate with each other and resolve all issues as soon as possible. Do not wait until the last minute. As I understand it, the June 30th deadline is an absolute, “there are no do overs”.

Let’s all work together to avoid any problems and get our clients the tax credit they deserve!

Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

No comments:

Post a Comment