Depending on the complexity of the deal, your buyer may or may not be able to close in time for the tax credit. I have seen short sales that take as along as a year and that lenders are overwhelmed with short sales and foreclosures to process.
Considering your buyer may have an opportunity to purchase the home at a discounted price that it was not affordable before, your buyer may still end up getting a good deal without the tax credit.
However, with short sales, the time frame window is wide open to anything that could go wrong along the process. Maybe you can show your buyer other homes while he/ she can qualify for financing now.
Denise Bivens, e-PRO
Century21-1st Choice Realtors
Unwavering Commitment to Service
Good question there.
From my understanding, the lender is not really part of the contract. The Ratified Contract is between the Seller (the homw owner, borrower from bank) and the Buyer, the lender is just 3rd party to approved the sale. So, as long as if the Buyer has Ratified Contract from the Seller of the property dated before 4/30/10 and if the closing occurs before the date of 6/30/10, the Buyer will be qualified for the tax credit of $8,000. And of course, the Buyer must be qualified in the limitation of the tax credit guideline. Hope this helps*_*