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Give me my deserved TAX CREDIT or I'm outta here!

By Deb Brooks

Real Estate Broker/Owner with Brooks Prime Properties Wichita Falls Texas

September 17, 2009 02:41 PM

Recently a cousin of mine assisted his son in the purchase of his first Townhome. Ross, the young man that made the purchase is a recent graduate of Rose-Hulman, Institute of Technology, Rose-Hulman Institute of Technology, located in Terre Haute, Indiana, is one of the nation's top undergraduate engineering, science and mathematics Institute, an exclusive University in Terre Haute, Indiana. cap.jpg Graduate image by junebug_2992425

Ross graduated with honors and is now beginning his Medical School agenda.

Scrubs.jpg picture by dabydoll

Ross moved in to his new Townhome under the pre-lease guidelines of the Association of Realtors in Terre Haute Indiana. Now, I'm a Texas girl so I'm not clear on the Indiana guidelines but I am assuming they are relatively close in nature....right?

The Townhome was purchased as a "short sale" and the closing seems to be prolonged. Surprise, surprise! How many people do we have to wait on to end the red tape list of "sign-offs" for a short sale?

An infinite amount?

Why? My question is.....why?

Ross was allowed to move in and make it his home. Paint, cleaning, trimming, landscaping, utilities, address changes, money and time. All were invested in their venture. Dad was there for support.

But here's the rub. School has resumed and Ross's schedule is becoming cram packed.

The closing is just not happening. Not yesterday....not today...and seemingly not tomorrow. Always an excuse ... or blaming another person for the hold up ... or a deadline that is promised but not met.

Ross's dad, my cousin Robert,has told the lender this: "If you don't close within the next couple of weeks we will have to move out and purchase another property to close on to receive the $8,000.00 TAX CREDIT.

"Ross will NOT LOSE HIS TAX CREDIT DUE TO YOUR PROCRASTINATION...", stated Robert...

My question is: Is this a ploy?

Or just sub standard service? Any advice from you "SHORT SALE PROS?"

Thanks AND Later in the rain,

Deb

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Bobbi McKinnon

Keller Williams Group One Realty - Reno, NV

Realtor - Northern Nevada

Not sure of the rules in Indiana or Texas, but here in Nevada, you can not take possession until you have closed escrow.....Seems like a great way to set yourself up for VERY bad news. If they walk away how about all the money/time spent on repairs/upgrades. Ouch!

Sep 17, 2009 02:49 PM

Deb Brooks

Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

Hey Bobbi, that's one of the things I am so worried about! I have no involvement in this transaction so I don't have details but it really disturbs me. To think they could set them up like this and then drop off the job so easily. Ish...I just don't know. There is a lot to be lost. I agree.

Thank you,

Sep 17, 2009 02:51 PM

Monika Depalo

GAFF'S REFERRAL'S INC. - Port Orange, FL

REAL ESTATE Agent/Stager

Avoid short sales. There are not too many benefits to the buyer unless they have time on their side it is not for those under a deadline unless there have been multiple offers and the bank has approved the price. This short sale process has overloaded the banks and they aren't used to doing it in an efficient manner and see it as a special circumstance and are trying not to lose money and they have monthly goals to meet and have stockholders. Their tax year ends soon and then they will have some of the losses carry over there. When they make bad loans the government only will pay so much compensation or allow a certain percent of defaults and bad business deals.

Sep 17, 2009 02:52 PM

Monika,

If I had the chance I would have warned him. Any advice?

Thanks,

Sep 17, 2009 03:01 PM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Deb, my guess is that there are people on pins and needles all over the country. If you're buying a short sale, missing the deadline is a real possibility.

Sep 17, 2009 03:11 PM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

As that tax credit deadline looms Deb it is going to be interesting for a lot of people not just the short sales. Good luck!!

Sep 17, 2009 03:30 PM

Dale Baker

Baker Energy Audits and Commercial Properties Inspections - Claremont, NH

New Hampshire Relocation Real Estate Information

Howdy there Deb

I sure don't really know alot about, them there Short Sales. Maybe you could give a call to Alan K. there in Austin. He posted the first of a series, yesterday on the subjrct of short sales. The first one, is kind of a test to take.

I mainly stop in to say, Welcome back to the AR community! You sure have been missed here, my friend. There been a lot of new things going on, in the community.

Baker Home Inspection and Consulting AR Signature

Sep 17, 2009 04:08 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

I make no claim to being a Short Sale Pro or any other kind of Pro for that matter.

The answer is always found in the contract. What does the contract say? That includes all addenda.

However, IMO, this was a well designed ploy to get someone in to make payments while waiting for the promise of a short sale approval.

Of course, anyone who would make improvements, cleaning, painting, etc. on a property that they do not own is fair game for such a ploy. Making sweat equity improvements to a property one does not own is simply making a financial contribution to the owner. If the sale does not go through, only the owner/bank benefits.

The question now is, will he get his earnest money back if he doesn't close (default)?? Mmmmmmmm. Without a clear approval deadline in the Short Sale addendum, he may not.

Sep 17, 2009 09:17 PM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

Oh gee...he has improved the property?

Banks are on their own timetable and I never promise anyone a closing time. Sounds like your cousin is trying to pressure the listing agent, and it will do no good to do that. Unless they have dropped the ball on the negotiating and not following up with the negotiator there is little they can do.

What is she saying the issue is?

Was it approved or not?

Now if your nephew walks the bank has a more updated condo to sell.

Sep 18, 2009 12:27 AM

Caren Wallace

Premier Property Group LLC - Tualatin, OR

Portland Caren Real Estate

Deb, I have recently given up on a short sale with USBank! I had 3 offers on the property, one was full price and they simply told me that they would get to the file when it had a foreclosure date! They are only responding to offers on properties with a date to go to foreclosure! Our county is scheduling short sales into April of 2010. I don't think any of these buyers will wait that long!

Sep 18, 2009 01:19 AM

Russell Lewis

Realty Austin, Austin Texas Real Estate - Austin, TX

Broker,CLHMS,GRI

Hey girl, it's great too see you around again, I also took off time from AR because I was so busy this summer and also took some needed time away from work! I look forward to checking in with you in the future! Have a great weekend!

Sep 18, 2009 01:36 AM

Give me my deserved TAX CREDIT or I'm outta here!

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Deb Brooks

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