NJ First-Time Home Buyers

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NJ First Time Home Buyers: The Clock is Ticking Again

NJ First Time Home Buyers: The Clock is Ticking Again

NJ First Time BuyersThe 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.

 

Other NJ First Time Home Buyer links:

Use Your Tax Rebate to Buy a Home

Gloucester County First Time Home Buyer Grant

Comment balloon 5 commentsStephen Kappre • January 26 2010 09:46PM

Comments

Steve - Great message !  So true it is important to plan ahead for this credit !  At least this time it was planned better by having to be under contract by a certain date ... end of April... but not close to the end of June.  I think these will be heating up shortly !!

Posted by The Somers Team, Real People. Real Dreams. Real Estate. (The Somers Team at RE/MAX Access) over 8 years ago

...not long to go !

And I AM SURE there will be a TON of FTBs who live with regret after this $8K is gone !

Posted by Sheldon Neal, That British Agent Bergen County NJ (Bergen County, NJ - RE/MAX Real Estate Limited) over 8 years ago

I've now begun to caution my buyers that "short sale" listings can no longer be considered for purchase if they hope to qualify for the first time homebuyers tax credit.  Too many of these still require four to five months of processing time before final approval by the Seller's Lender(s).

Posted by Tom Boos, Providing the very best of service to Sellers and (Sine & Monaghan Realtors, Real Living) over 8 years ago

Chris - I agree

Sheldon - I think there will be some, no doubt.

Tom - I think that is a good move on your part.

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 8 years ago

Steve - Great reminder and well written. Hopefully FTHBs will not all wait until the last minute, but I'm sure it will happen and then they will kick themselves.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) over 8 years ago

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