30 Days VS. 3 Plus Months - You be the Judge!

The wire is down for First Time Home Buyers to cash in on the $8,000 tax credit. April 30th you must be in contract and close by June 30th. You still have the opportunity to take adavantage of the tax credit.

Buying a home that is being sold by a seller and not a bank may be your only option soon. "Regular" sales or a home that is being sold by a seller and not a bank will allow you to close an escrow around 30 days. Short Sales are taking so long that it might be 3 months before you hear back from the bank and at that time the answer could still be no. Taking that long for a response might put you out of game for the credit.

But I can get a better deal when I buy a short sale.... right?

Sellers are very aware of Today's market and understand that they are going against banks. Banks are very aware of the market as well and won't let a home go for any price either. Having your Realtor negotiate with a seller could be more beneficial. A lot of banks will not allow for the buyer to receive credits to help pay for closing costs. You have a better chance at trying to ask a seller to help pay some or even all closing costs. Buying a home from a Seller might actually be a better choice of the two. Are you willing to wait for the bank to respond over 3 months but have your interest rate increase? If this were to happen that Short Sale might actually cost you more in the long run. See examples below:

"Regular" Sale: Seller & Buyer
List Price: $500,000
Seller Pays 3% Closing Costs: $15,000
Buyer Pays: $475,000
Payment at 5.125 Interest with 20% Down: $1,708.00 (Estimate)

Short Sale: Bank & Buyer
List Price: $500,000
Bank does not allow credit for closing costs
Buyer Pays: $500,000
3 month Response time interest rates go to 5.25%
Payment at 5.25 Interest with 20% Down payment: $1,750.00 (Estimate)
Buyer out of pocket for closing costs $15,000


Is the short sale reall worth waiting for? You be the judge!

***Payments do not include HOA's or Property Tax. They are estimates and for example purposes only!