If you are a first time home buyer eligible for the $8000 tax credit, time is running out.  If you are considering buying a bank owned foreclosure, it may be too late.  The closing must take place on or before November 30, 2009.  It usually takes about 30 days or more to close on a property with an accepted offer.  To be on the safe side you should have an accepted offer no later than the last week of October.  Expect delays, this may be the busiest time real estate has seen in years.  Keep in mind, with the recent down turn in home sales, there are fewer real estate agents, loan officers, appraisers and under writers available to complete the steps necessary to close on a property.

At this point in time I would suggest you avoid short sales.  These can tie you into a binding contract for months without receiving a response from the lender.  With a short sale you do not have an accepted offer until the lender approves the sale.  Because of the recent increase in the sale of bank owned properties there is already a tremendous back log of work these people have to contend with.  Any offers received will join a pile of offers with little hope of obtaining the proper authorization before October.

If you know of any first time home buyers, feel free to pass this information along to them.