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Just curious...for folks that might just now be going to contract on a house, the Nov 30 cut-off for the FTHB credit looms in the near future. I'm wondering how this scenario would play out...good contract, everything going smoothly, closing date set for 11/10...and then BAM...closing put off by 3 weeks to early December. Now the $8K credit is lost to the buyer because you MUST close on or before 11/30. How unfair would that be to the buyers, esp. if change to closing date is caused by a bank error or back-up.
Any opinions on what, if any, options are out there to cover onesself to avoid losing this credit?
Try to close sooner? There really wouldn't be much else possible if it does end on 11/30/09. I doubt they have extensions for bank error, delayed closing, etc.. when the time comes.
Just curious...for folks that might just now be going to contract on a house, the Nov 30 cut-off for the FTHB credit looms in the near future. I'm wondering how this scenario would play out...good contract, everything going smoothly, closing date set for 11/10...and then BAM...closing put off by 3 weeks to early December. Now the $8K credit is lost to the buyer because you MUST close on or before 11/30. How unfair would that be to the buyers, esp. if change to closing date is caused by a bank error or back-up.
Any opinions on what, if any, options are out there to cover onesself to avoid losing this credit?
The purpose of the credit is to trick you into paying a higher price for the house.
So it doesn't really matter whether it expires just before closing -- the credit will have served its purpose either way.
The smart thing to do is wait until it expires (unless you think they will renew it which is quite likely)
That's why I am going to have mine listed by September 1. There is going to be a frenzy in mid October. Closings can get delayed. Better allow time for trouble. Some of these folks think they are going to close a short sale? with a 3.5%FHA loan?---interested in the Nevada Oceanfront?
That's two and a half months away. Knowing the credit expires 11/30, why would wait until the last minute to close? Why not request an October closing, then build in time for "bank error or back-up". (And being an agent who works predominantly with bank owned properties, there are definitely times when banks make mistakes, but it's not as prevalent as some agents would have you believe. I have found that "bank errors" are usually agents who don't understand bank addenda. In order to save face in front of their clients, some agents blame the banks.)
The moral of the story is, if one waits that long to close knowing the expiration date, then misses the expiration date...one deserves whatever happens.
Quote:
Originally Posted by SadieLu
Just curious...for folks that might just now be going to contract on a house, the Nov 30 cut-off for the FTHB credit looms in the near future. I'm wondering how this scenario would play out...good contract, everything going smoothly, closing date set for 11/10...and then BAM...closing put off by 3 weeks to early December. Now the $8K credit is lost to the buyer because you MUST close on or before 11/30. How unfair would that be to the buyers, esp. if change to closing date is caused by a bank error or back-up.
Any opinions on what, if any, options are out there to cover onesself to avoid losing this credit?
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