West Jordan

I failed to mention, in my earlier post, that if you are a first time buyer and wanting to take advantage of the $8000 tax credit – you may want to avoid offering on a property in a short sale status.  We find that most short sales, if approved, take a couple of months.  While some are quicker to get approved the majority take longer and sometimes do not get approved.

As most of you are aware – a short sale is a situation where the lender (or lien holder) is asked to take less than they are owed.  Quite often more than one mortgage is in place and an approval needs to be obtained from all.  This generally takes longer than if just one lender is involved.  Occasionally we see the first mortgage willing to participate in the short sale while the second is not.  Unfortunately, at times, we don’t discover this unwillingness for several weeks.

Given that a transaction needs to close by November 30, 2009 it is my recommendation that short sales possibly be avoided in order to meet this deadline.  With a short sale there is no guarantee in regard to timing.  Take this into consideration when finding the perfect home for you and obtaining the tax credit.

Along with the federal government tax credit, I wrote about yesterday, the state of Utah is offering a new edition of the Home Run Grant (referred to as Home Run 2).  This program will end on November 30, 2009 just like the tax credit.  The Home Run 2 is offering $4000.00 for a buyer purchasing new construction.  The income restrictions for this program are $75,000 for a single head of household and $150,000 for  a couple.  The latest update I read indicated there were still approximately 1400 grants available.  You can find more information at www.utahhousing.org.

I have received some questions in regard to combining the 2 programs (federal tax credit and Home Run 2).  At this point, the only way to do that would be to purchase a spec home (new construction already complete) and close by the 30th of November.  Remember – the tax credit only applies to homes that have closed escrow by the deadline.  However, the Home Run 2 program can apply even to homes that will not be complete until June of 2010.  You just have to be under contact, with a builder, for the construction of a new home by the deadline.

Don’t hesitate to call or e-mail with any questions or comments!  I look forward to hearing from you!  As always – the West Jordan Office of Coldwell Banker Residential Brokerage is here to take care of your Real Estate needs.

Many of you are aware of the federal government’s incentive program that includes a tax credit of up to $8000.00 for first time home buyers purchasing a primary residence.  Time is of the essence as this program terminates on December 1, 2009.  In order to meet this deadline a qualified buyer must be able to close escrow on or before November 30, 2009.  Recently we have watched other incentive programs, such as Cash for Clunkers, be extended.  There is no official indication that this tax credit will be extended.  This may very well be a once in a lifetime opportunity to obtain such a credit when purchasing a home.

I can help!  I manage an office of 58 qualified agents to take care of your Real Estate needs.  We specialize in first time buyers and will provide exceptional service to you as you take advantage of this opportunity.  Give me a call and I would be happy to select the right agent for you!