On my radio show last night we hit on a topic that I think should be a major concern for all agents. The conversation was; if a first-time home buyer attempts to purchase a home tagged as a short sale and it does not close in time to qualify for the tax credit. The buyer, looking forward to purchasing the property while calculating the current tax credit ($8,000) as part of their buying budget.
Some months later, and the short sale still not approved, the December 1, 2009 deadline date passes. This buyer has lost eligibility to receive the tax credit! Who is liable? What happens now? It’s important to educate your buyers that this risk is real!
As smart as our Government thinks they are, I am almost certain this issue has not been addressed. I will personally send a copy of this letter to Washington voicing my concern on the issue.
In the meantime, I think it’s important, as buyer agents to inform the buyer of the risk that is involved. Maybe not so much today (March 17, 2009 as I write this), but with the passing of each month the risk level gets higher. By the time we reach August and September, the risk almost becomes a reality.
As seller agents, we should add an additional clause to our short sale addendum spelling out the risk for the buyer. This way, all parties are aware before entering into the agreement of sale.
Food for thought? Absolutely! And as I finish off this post, I’m not even sure how this can be addressed. What I do know is this will not stimulate the sale of pre-foreclosure homes that require a short sale. And these are the homes the Government should want off the market.
RE/MAX All Pros