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I'm a long time poster but wanted to go completely anonymous for this post since my original user name has possibly identifying information in it. Long story short we relocated across country for work, and had our house sale in our home state fall through right before we left. We've been in temporary housing for the last 2 months. We have a new buyer on our home who asked for a 60 day escrow. We are just over 30 days into that right now. Our agent is representing the buyer as well.
We had a bidding war on the house and chose this buyer because they were more familiar with our neighborhood and the older homes in them (they currently own and live in the same neighborhood). The other buyer could have closed sooner but we were concerned they would have backed out after the inspection the way our first buyer did (again old home issues).
We found out today that our buyer didn't file their taxes until they were under contract on the house and we are now waiting on the IRS to process their return. I have no idea how long that will take, but they have until the 12th to produce a mortgage commitment as per our contract. We are in a really tough place housing wise. We have somewhere to stay until the end of the month and then we are basically out of luck on temporary housing as we relocated to city that gets a lot of vacationers and prime season here is right around the corner and the cost goes through the roof. We are also under contract on a purchase here which we have no way out of unless our sale falls through. I'm curious what others would do in this situation. We can't afford to let the sale drag on and on waiting on the IRS. I know we still have until the 12th to really see what's going to end up happening, but I want to have a game plan in place should that day come and go and nothing from the IRS. If we had known they hadn't yet filed their taxes we wouldn't have sold to them.
Long story short we relocated across country for work...
We have a new buyer on our home who asked for a 60 day escrow.
We are just over 30 days into that right now.
Our agent is representing the buyer as well.
I know we still have until the 12th to really see what's going to end up happening,
but I want to have a game plan...
The contract allows the buyer until the 12th to secure their loan.
Have they put down much in earnest money? <-- your game plan
this is interesting, and you need to provide more info.
I was unaware that to qualify for a loan that you needed some type of response to the filing of your return. Sure, it sounds easy enough when someone is buying in October and they filed taxes April 15. Once the new year rolls around, lenders want you to have filed your most recent tax return. I do know many people that have had to file their taxes early/before they planned in order to get the loan approved. But it seems that was only "OK Mr Lender, here's the tax return I've sent in today."
Now, if you're trying to say that they are reliant on the income tax refund to have the funds to close, hoo-boy that's another matter entirely.
this is interesting, and you need to provide more info.
I was unaware that to qualify for a loan that you needed some type of response to the filing of your return. Sure, it sounds easy enough when someone is buying in October and they filed taxes April 15. Once the new year rolls around, lenders want you to have filed your most recent tax return. I do know many people that have had to file their taxes early/before they planned in order to get the loan approved. But it seems that was only "OK Mr Lender, here's the tax return I've sent in today."
Now, if you're trying to say that they are reliant on the income tax refund to have the funds to close, hoo-boy that's another matter entirely.
No they aren't relying on a tax return refund to fund the purchase in any way. The buyer is a lawyer who owns his firm and filed an extension so he hadn't yet filed. They weren't planning on buying a home so he had to rush it when he decided to buy ours.
googling on the IRS site, it looks like it could be a good while - 5+ weeks easily - before their transcript is available. You could also ask your mortgage lender for a "real world" answer.
This is so much BS and is lender specific. You cannot require a transcript if the return is not yet delinquent. Unfortunately, this lender has what is called an overlay, unless.....
Since your buyer is self-employed, it sounds like one of two things happening here. The first being the buyer's 2017 is needed to qualify this buyer, meaning s/he cannot qualify on 2015 and 2016 income. The 2nd is your buyer's lender is inflexible. Almost all professionals use a CPA to file returns and 99% of the returns they file are electronic. Lenders want supporting evidence that the income used is present. An alternate to the 4506 (transcript), is a signed letter certifying the attach is the return filed. But that's what some lenders would do, if they can think outside the box.
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