Tuesday, August 25, 2009

Buying Destin Short Sale? Don't Take A Chance on Your Tax Credit!

How many times have I asked agents writing offers on my Destin Florida short sale listings to allow 120 days for lender approval? I have it in my MLS notes, I tell them by email and by telephone. And yet, I repeatedly get offers with 45-day approval time lines. Yesterday I received an offer on a Destin short sale listing with a closing date of November 25 and 45 days for short sale approval…. Hmmmm…. I wonder why….? OH Yeah! The First Time Home Buyer Tax Credit! Bingo! The final day by which a property must close would be November 30, 2009 in order to qualify for up to $8000 in federal tax credits.

I am very sorry to say, but writing an offer on a short sale now, with about 90 calendar days to go before the tax credit ends is not in the best interest of your buyer, OR your short sale seller. Bank of America short sales tend to take three-five months for approval…. "Ouch!", you say! But it is true. Sure there are exceptions. Sure, I just had one approved in 28 days. But-- would I bet someone’s $8000 tax credit on it?

Would I take my seller’s property off the market for 90 days just to have the buyer “walk” when the deadline is not met, and hurtle my Destin short sale seller three months closer to foreclosure? Would I take my buyer to the brink of not finding a replacement home in time to qualify for the credit if the short sale does not get approved? Have I considered the new Respa rules that might further delay a closing? No.

If you are working with a buyer now to find a Destin home to close by November 30, please don’t roll the dice and look at short sales. Or go in with your eyes wide open, don’t expect the tax credit, and allow for a reasonable amount of time for short sale lender approval.

It's Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: [email protected]

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