NJ First Time Home Buyers: The Clock is Ticking Again
The real estate industry went through a "buzzer beater" with the first-time home buyer tax credit deadline last November. Title companies were scrambling, this NJ loan officer was working overtime, and attorneys were getting ready to duke-it-out if need be.
Many first time buyers were relieved to hear that the tax credit was extended. Some buyers closed a few days later without an issue. Some closed a few weeks later. And in one situation I was personally involved in, a home buyer was buying a short sale and closed in JANUARY, or two months later.
The current guidelines for the first time home buyer tax credit state that the home buyer has to be under contract by the end of April (April 30th). Buyers also have to settle by the end of June (June 30th).
BUT SOME BUYERS WILL STILL MISS THESE DEADLINES!
And some sellers will miss out as well.
There can be many reasons for this:
- Bad real estate agents
- Bad loan officers
- Unorganized buyers
- Short sales and foreclosure transactions that are mostly dictated by the bank holding the mortgage on the seller's end.
A few months ago, it was cake to close a purchase transaction in 2-3 weeks. These days most contracts are written for 45-60 days, and due to situations outside of a buyers control, they can take significantly longer.
BE PREPARED!! PLAN AHEAD!!
If you have questions feel free to call. Proper planning over the next few weeks may be the difference between a great success and a dreadful let down.
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