The Perfect Real Estate Storm is Coming!

Here is the scenario:

1.    Federal First Time Home Buyers Tax Credit ends 12/01/2009 (assuming it is not extended)

2.    New Lender Rules Allow for a 3 Day Right of Rescission

3.    Lenders are currently backed up and slow at closing loans

As we close in on the deadline for the tax credit of 12/1/2009 (see link above) keep in mind you will have to be in contract with a home by approximately the first part of October to close by 12/01/09, don’t expect the IRS to be benevolent if you close a day or two late.

With the new Lending rules you could end up with a 3 day delay if your lender makes any mistakes.

Most lenders are backed up and not closing loans on time due to myriad rule changes and short staff.

Because most lenders attempt to close at the end of the month we are forecasting a perfect storm that is going to cause a lot of home buyers a divesting blow due to late closings.

Our recommendation is for you and your real estate agent to ensure that your lender has disclosed everything properly and you loan in formally pre-approved well in advance, lock those interest rates as early as possible. 

Last and most important… Close early.  The last day of the month is November 30^th, that is a Monday, Thanksgiving is on Thursday November 26 and that is going to back up the entire week due to escrow and bank closing both Thursday and Friday.  We highly recommend that any closing should aim at Thursday November 19^th allowing for the avalanche of closings expected in the last week and any delays that could occur.

See our web site RealEstateInTheHighDesert for more information.

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