Federal Tax Credit Deadline
August 17th, 2010
Question: Getting Back Escrow on Failed Short Sale ?
We’ve had a short-sale offer (cash) hung up in purgatory since Apr.14th. We extended the closing/expiration date to June 30th, the deadline for claiming the fed tax credit, but the offer has still not been approved. As far as I’m concerned this thing is dead in the water. I just want to collect my $1000 deposit , & intend to request it in writing on the 30th. Anyone know off the top of their head how long they have to get it back to me (Florida) ?
Steve, the contract expires the 30th, this Weds. I don’t intend to request the money until then.Answer: Ok, first of all on an all cash transaction there should be no hold up. On the buyer’s side (your side), you gave an Earnest Money Deposit), have shown proof that the balance of the money is in the bank ready and available on or before the original closing date.
On the Sellers side, the lender has not accepted your offer. Right now there could be several things happening. It could mean that the Original owner of the property and the lender has come up with a solution and therefore the short sale has been postponed (you should have been notified), the title is not clear and needs time to take off previous liens, property taxes have been readjusted and the short sale is not enough to cover the proceeds, or any of another list of things.
My suggestion to you is to call the attorney or if there is an Escrow Officer speak with her. If the title is not clear sometimes they are just waiting for the proper paperwork to arrive and for it to show up on the title, property taxes would have to be pro-rated again if adjustments were needed. With that said, if the transaction closes on the 30th, the file would be rebalanced and re figured and both the seller and buyer would receive a corrected HUD-i with al monies broken down according to who paid for what and buyer would have the amount need to bring in and the check would be prepared for the seller. This is only after all bills given into escrow are paid.
If the Closing date comes and goes, the buyer should send a certified letter to the attorney, the lender and the seller, the buyers agent, sellers agent, buyer & seller brokers requesting that the Earnest Money Deposit be returned to the buyer due to non-dilligent sellers.
This way everyone that is a party to the transaction has complete knowledge of what is going on. Once the file is balance, bills all paid, the final checks will go out. This should be no longer than 2 weeks from the closing date of the 30th.
Home sales in Baltimore area decline by nearly 19% in July
Fewer are buying in the absence of the homebuyer tax credit Home sales in the Baltimore metro area fell nearly 19 percent in July compared with a year earlier, a sharp drop-off from the boost that came with a now-expired tax credit for first-time buyers.
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