It seems that the tax credit deadline for homebuyer’s tax credit may be extended for buyers to CLOSE on their homes. If you did not have your contract accepted by April 30, 2010, this does NOT apply to you. The new deadline if signed by President Obama will be September 30, 2010 for Nashville (and other national) buyers to close on their home. There are still more steps to go, so check back for more updates.
So, curiosity may have you asking, why would it take over 60 days to close a home that was under contract on or before April 30, 2010. Here’s a list of some of the things that can affect the closing in the current market.
1. The buyer is in contract on a short sale. The process has slowed down due to lack of staff, rise of short sales nationally and influx of tax credit contracts.
2. The lender cannot close on time. Lenders are pushed to the maximum right now. Many downsized their processing and underwriting departments when the economy went south. Now that this spike has occurred, many simply cannot close on time.
3. Repairs take longer than the time allotted. Yesterday, I heard a story from an agent. His buyer ran into contract to meet the deadline with no thoughts to the home’s deeper condition. He made the deadline; however, the home had an inspection contingency. After the inspection, all parties found out the repairs needed were pretty hefty. The buyer didn’t want to “walk on the deal,” and the seller was willing to make the repairs. Those repairs are going to take quite some time. Then the appraiser has to get in there. The inspector has to come back. You get the idea…
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