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Short sales and the tax credit

By
Real Estate Sales Representative with Long Realty Company

Per the IRS this morning, in order to qualify for the 1st time or repeat homebuyer tax credits, a contract is considered consummated when the buyer and the seller have agreed to terms.

  The status of the short sale approval has no bearing on the buyers qualification - in other words, the short sale lender does not have to agree to the terms prior to April 30, 2010.  

 That said, the transaction must still close on or before June 30, 2010 to complete the qualifications for the tax credit.  

 

Richard Lecinski

Long Realty Company

Tucson, Az.

520-834-4663

http://rlecinski.longrealty.com

 

Comments (5)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Now that is the best news for my buyers that have short sales going at this time.

Apr 21, 2010 05:54 PM
Don Spera
CR Property Group, LLC - East York, PA
Serving York and Adams County, PA

I think a lot of us did not pursue selling short sales due to the tax credit deadline a month or so back, as you didn't know how long it was going to take to get results from the lenders on their offers.  We would have liked our buyers to take advantage of the tax credit and be able to get a better buy on a short sale, but it was gambling to get that accomplished.  I wish there was a way to limit the banks on how long it takes to respond to a short sale offer.

Apr 21, 2010 06:09 PM
Richard Lecinski
Long Realty Company - Oro Valley, AZ

Don,

I wonder how the HAFA program will turn out for the short sellers.

Apr 21, 2010 06:25 PM
Michael Johnson
Carolina One Real Estate - Goose Creek, SC
Metro Charleston SC

Thanks for the info Richard!  Do you have a link to an article that explains that? 

Apr 24, 2010 03:15 AM
Richard Lecinski
Long Realty Company - Oro Valley, AZ

Michael,

Actually I called the IRS.

Apr 24, 2010 04:42 AM