Home Buying in Oakland>Question Details

Ms. Green, Home Buyer in Fayette County, TN

I'm in the process of looking for a home. I have been pre-approved up to 100%. I found a short sale home & a foreclosure home. They are both

Asked by Ms. Green, Fayette County, TN Sat Mar 27, 2010

in my price range. Which one would be better, if I wanted to make the deadline for the $8,000 tax credit?

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Terry brought up a good point about the property qualifying. If you are pre-approved for 100%, you may not qualify for the type of loan needed to buy one of these foreclosures. Best to check on that. It would be bad to go under contract in time for the credit and have it fall through and not be able to get under contract in time to get the credit.
1 vote Thank Flag Link Sat Mar 27, 2010
The foreclosure would be your best bet. Is it in good enough shape to go FHA? You still have till the end of April to get it under contract but I would not wait until the last minute. I will also tell you that from what I have seen in the last 10 days properties that are priced correctly and in move in condition are not lasting long on the market, be ready to move if you are sure you like the property.
1 vote Thank Flag Link Sat Mar 27, 2010
The foreclosure, in most cases. Short sales are notorious for taking an extraordinarily long time to reach a binding agreement. In order to qualify for the current tax credit, you'll need to have a contract in place by 4/30/10 and you'll need to close on it by 6/30/10.

Whichever one you choose, you'll want an experienced agent to make sure that things are pushed along.
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1 vote Thank Flag Link Sat Mar 27, 2010
If the house is listed as an reo it will likely close quicker than a short sale as they already have bank approval. My last reo property took 12 days from contract to close. A short sale needs bank(s) approval and may take months...may not even close till after the tax credit is expired.
1 vote Thank Flag Link Sat Mar 27, 2010
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