NJ First-Time Home Buyers


BEWARE: First Time Home Buyer Tax Credit Deadlines, Foreclosures, and Short Sales

BEWARE: There is a combination that the first time home buyer needs to be aware of. That combination would look something like this ...

First Time Home Buyer Tax Credit Equation


The main item of issue here is the short sale or foreclosure. The home buying transaction typically takes 30-60 days. However, when the bank that is holding the seller's mortgage needs to make a decision, on "who, where, when, why" regarding the sale of the home, a buyer can expect to add a few weeks ... or even a few months to the timeline. And that is no exaggeration.

In such situations you could have an attorney for the seller, a negotiator for the short sale, a PMI company evaluating their loss options, a seller that is going crazy and doesn't care anymore ... and the list goes on, with each party adding more time to the equation.

So first time home buyers be prepared. If the home that you are purchasing is a foreclosure or short sale, you may be getting an AWESOME deal on it. And well you can still get an awesome deal, just don't be heart broken or count on the first time home buyer tax credit.

If recieving the first time home buyer tax credit is going to make or break a transaction for you, think long and hard about how things could pan out.


Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

Call direct @ 856-419-3561 | Subscribe to Steve's blog via e-mail

Comment balloon 8 commentsStephen Kappre • January 29 2010 09:45AM


Hmmmm, the honest scare tactic...For me this kind of thing just doesn't work for my clients.  I think I need to be aware of the slowness with the lenders to get their work completed in a timely fashion, and I am.  There can be slow downs at any point and for any reason.  I prefer to offer my clients compelling reasons to make a decision and move forward as quickly as possible rather than try to manipulate them with a scare tactic (no matter it is valid).  I guess it is a glass half full, glass half empty thing,maybe

Posted by Larry Lawfer, "I listen for a living." It's all about you. (YourStories Realty Group powered by Castles Unlimited®) about 10 years ago

Larry - I don't fully understand why it is a scare tactic? I don't know how you work, but I try never to candy coat the reality of times lines and possibilities that (especially) a first time home buyer should be aware of. If I were sitting in my office face-to-face with a client, and I knew they were interested in short sales or foreclosures, I would tell them the very same thing off the bat. Why would you ever delay such a message to a client? That is carelessness. I believe in being as transparent as possible. It is not a half full / half empty scenario, it is reality.

Oh and the last transaction I closed that was a short sale took 5 months. No delays AT ALL on the buyer's end, his Realtor's end, or his mortgage company's end (that of course was me).

Posted by Stephen Kappre, Helping You Home (KW Hometown) about 10 years ago

Steve:  Absolutely great post.  This is not a scare tactic at all ... it's reality.  Especially with first-time buyers there are so many issues that can arise in a deal ... and each can be a deal-breaker for them.  I see this as pure education about the realities of the present day mortgage process and buying a home.  The facts are what they are ... and everyone should be aware of them so they can make the best decisions possible for themselves as individuals.  Your blog points that out clear and loud.  It's a point that needs to be made ... and understood.


Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) about 10 years ago

Gene - Thanks for the kind words. Now is definately the time to get the word out ... not March or April, it is way too late then!

Posted by Stephen Kappre, Helping You Home (KW Hometown) about 10 years ago

Steve. I think your billboard says it all! Very clever. Very true. And now, will they listen?

Posted by Jane Cross (Homes By Cross serving Charlotte NC Real Estate Needs) about 10 years ago

Steve..You took the words right out of my mouth!


Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) about 10 years ago

Steve, I agree with Gene. We need to coach our clients about many things during the buying process and the reality of the timeline to close a foreclosure and especially a short sale is top on my list to do. I appreciate your post coach.


Posted by Mark Ilderton, RE Agent - Columbia South Carolina Real Estate (Exit Real Estate Consultants) about 10 years ago
aWIbE8 Great thinking! That really breaks the mold!
Posted by Bryson almost 9 years ago

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