Posts Tagged ‘buy short sales’

Yup you heard it right.  Nothing set in stone, but they are pushing for it.  Great news and if it goes through there is tons of sales going to be made this summer!!!  We are seeing a HUGE SPIKE in people looking for great deals in short sales.  So now is the time….when?  NOW!  (Read On)

First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law. As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years. The closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions — especially short-sales, which is a more involved process.  It remains to be seen, however, whether the amendment will go anywhere. It is part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest.

Reform Panel Members Got Millions From Wall Street

The 43 U.S. lawmakers charged with shepherding a massive government overhaul of the financial industry over its final hurdles in Congress have collected at least $67 million combined in campaign contributions from financial sources. The conference committee’s Senate members have received more than $40 million from political action committees and individuals connected with Wall Street securities and investment firms, commercial banks, insurance companies, mortgage bankers, and finance and credit companies. House members, including panel chairman Barney Frank, have collected at least $27 million for their election campaigns over the same period. Democrats, who make up nearly two-thirds of the panel, are the financial industry’s greatest beneficiaries, drawing an average of $1.7 million per lawmaker. In fact, about one-third of industry contributions, or $21.7 million, went to only two Senate Democrats—Banking Committee Chairman Christopher Dodd of Connecticut and Charles Schu
mer of New York. Contributions have been received from securities, investment, banking, insurance, mortgage banking and finance companies since 1989 and during the 2010 election cycle, which began January 1, 2009. This data was compiled from public disclosure documents by the nonpartisan Center for Responsive Politics.

Diana Olick – Extend Home Closing Deadline For Tax Credit: Senator Reid

“You may recall on Tuesday we all discussed the home buyer tax credit, and specifically how many potential buyers rushed in to sign contracts by the April 30th deadline but wouldn’t make it to the June 30th closing deadline. Now Senate Majority leader Harry Reid (D-Nev.) is offering an amendment to the American Jobs and Closing Tax Loopholes Act of 2010, to extend the closing deadline to September 30th. Again, no new buying opportunities here, just a longer period to close. I spoke with Senator Reid’s office after the announcement, and spokesman Jim Manley said their chief concern, especially in their home state of foreclosure-ridden Nevada, is timing to complete short sales. That’s where the bank allows the troubled borrower to sell for less than the value of the mortgage. Here’s Manley’s full explanation: “The Realtors believe there will be a lot of homebuyers who will not be able to meet the June 30 deadline through no fault of their own.

There are a lot of transactions that need to be closed which is overwhelming the system. And many of the homes that are being bought are short sales which require the sellers lending institution to agree to take accept less than full payment on the outstanding mortgage. The financial institutions are taking a very long time to come to that decision and the home buyer is helpless to move the process along. This amendment gives those homebuyers an additional three months to close the transaction.”

Keep it Short,

Mike Knows