Profile picture for jackie1961

short sale. Does a buyer lose out home credit if bank does not approve it by April 30, 2010.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 01 2010 - Independence
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

I agree with Jay. The contract is between the buyer and the seller. It is CONTINGENT upon lender approval. The contract is signed and executed, title is opened and the contract goes to the buyer's lender for loan processing when the seller and buyer sign it not when the seller's lender approves it. If the seller and buyer do this before April 30 and it closes before July 1, 2010, you should be okay. However, if the bank does not approve the sale/contingency by July 1, you will be out the money b/c you can't close it by then.

In my opinion, this is an area of confusion for many people. But if you see the bank approval as a contingency like a financing contingency or the sale of the buyer's existing home as a contingency, then it makes a little more sense. I would not recommend to my buyers to take this risk. I think it is cutting it too close and it only takes one weak link in the chain to mess it all up. This may change April 5, but it is still a huge risk for the buyer who wants/needs the $8000 or $6500.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 01 2010
In WA, our short sale contract addendum identifies mutual acceptance has occurred when the lender approves the sale.  Therefore there is no ratified contract until the bank approves.  Your contract may have some grey area, but more than likely not, and there is no talk of extending the tax credit that I'm aware of.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 01 2010
Profile picture for sunnyview
Yes. You have to have an accepted contract before May 1, 2010 and then you have to close before July 1, 2010. the IRS has more info on their FAQ here. Hope it helps.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 01 2010
It's my understanding that if you are under contract by the end of April, you are safe--ASSUMING the bank accepts the offer and you can close by the end of June. The risk is that If the bank rejects the offer after April 30, you will not be able lock into another contract under the current ruling. Hopefully the bank responds quickly so you know where you stand and can get locked into another purchase agreement in case the short-sale stalls out. Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 01 2010

As it stand now , yes.

In order to be eligible, there ha to be an approved contract by 4/30/10

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 01 2010
According to the articles I've read, the offer has to be accepted by all parties by April 30th and close by June 30th. Here is an excerpt from an article on my website:

"The new law extends the $8,000 first-time home buyer credit through April 30, 2010, giving buyers who have signed a sales contract by that deadline until June 30 to close their deal."
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 01 2010
 
Related Questions
How do I find out which bank owns a foreclosure I'm interested in?
Profile picture for Linda Strasberg
Latest answer by Linda Strasberg
July 07 2010 | 8 answers
short sale. Does a buyer lose out home credit if bank does not approve it by April 30, 2010.
Profile picture for The LaPeer Team
Latest answer by The LaPeer Team
April 01 2010 | 6 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 5920 Sunridge Ct, Clarkston, MI Home For Sale
    5920 Sunridge Ct, Clarkston, MI 48348

     For Sale: $425,000

    • Beds: 4
    • Sqft: 3382
    • Baths: 5.0
    • Lot: 33976
  2. 7390 Oakstone Dr, Clarkston, MI Home For Sale
    7390 Oakstone Dr, Clarkston, MI 48348

     For Sale: $389,900

    • Beds: 4
    • Sqft: 2850
    • Baths: 4.0
    • Lot: 155
  3. 6167 Foxfire Cir, Clarkston, MI Home For Sale
    6167 Foxfire Cir, Clarkston, MI 48346

     For Sale: $314,900

    • Beds: 4
    • Sqft: 2700
    • Baths: 3.0
    • Lot: 11325