I am in Salt Lake City this week — and guess what?
They have foreclosure homes for sale just like Arizona does.
If you are looking to purchase a Salt Lake City foreclosure home, or a foreclosure or short sale home anywhere in the country and were planning on taking advantage of the $8000 tax credit your deadline is coming fast. In fact, the deadline for signing on the bottom line of your new home is the end of June 2010.
As the tax credit is defined now, you had to have had a signed sale contract in place before April 30, 2010 and you must close your escrow on your new home by June 30, 2010 to be eligible for the $8,000 home buyer tax credit.
Well, we’re now into June and the deadline is fast approaching. A lot of people who have not closed on their home are worried about being able to close by the end of June and are asking if there is an extension available. So far, I have to tell them – “nope, there are no extensions at this point, Congress hasn’t put anything into place.”
It certainly is a stressful time for a lot of people waiting to see what happens with their loan approval – not only the buyer, but the sellers who are waiting for the short sale of their home to get approved. Next are the real estate agents who have paychecks involved, as well as title people, and other folks who typically get paid at the time of escrow for the work they have put in ahead of time to get ready for closing.
Coupled with the question about whether we’re going to get an extension to let folks finish their home purchases is a question about whether we’re going to get another tax credit program. Some folks are asking for it to add more fuel to the housing market as it has severely slowed down since April 2010?
I’m not going to pick sides on this one as there are way smarter people than me analyzing it from both sides of the political spectrum. But I am willing to offer one thought as an alternative.
Dare I mention it, but how about if we bring back the Ameridream and Nehemiah programs? These programs allowed for seller contribution on FHA mortgage loan programs in the form of a gift through a third party. Fannie Mae and Freddie Mac could adopt something similar to open up a down payment allowance from the seller equivalent to the $8000 and $6500 tax credit amounts that are about to expire.
I know, I can hear the comments – go ahead and fire away. Not that this is going to solve our recession problems like so many people think a recovered housing market will, but it certainly might shift where money is coming from for down payment incentives from that of the government to that of the banker holding the short sale request or foreclosed home.
I’m just sayin’.