Posts Tagged ‘$8000 tax credit’
Chicago lofts, Short Sales, Foreclosures, FHA, and the $8000 Tax Credit
Posted by michaelhulett in Loft Buyers Sunday, 24 January 2010 09:46 No Comments
If you’re looking to purchase your new loft this spring there are TWO things you need to be aware of:
1.) FHA spot approval ends this month. If you don’t have a case# by January 29th it’s no dice. See your lender for more info or contact our longtime lending partner Andrew Luett w/Wintrust Mortgage at ALuett@LuettMortgageGroup.com. It’s not the end of the world as you can as you can still get the entire building approved but it often takes longer. Also, make sure to coordinate that timeline w/ your lender if you qualify for the tax credit, see below.
2.) If you’re depending on the $8,000 credit (to see if you qualify check out our recent post: http://www.lofthunt.com/2010/01/extended-home-buyers-credit/) then you really need to be very careful if choosing a distressed property. If the property is already controlled by the bank such as a foreclosure or if it’s a bank approved short sale, then you can probably get by with a diligent effort and a good team (Realtor, Lender, attorney). If it’s a typical short sale, BE CAREFUL. These transactions can drag on for months on end with little to no resolution. So what’s the problem? Well to qualify for the tax credit you need to have the property under contract by end of April and close by end of June. Since the life cycle of a short sale can often push the 1 year timeline, it’s likely that many buyers will blow right past those dates this spring. So be aware, move forward carefully and as always- Live lofty.
