Some lenders will only take a tax transcript from the IRS, they will not take anything else. ie: signed copies of tax returns as proof of filing, even if stamped by the IRS or given by your accountant. They will only take a transcript that they themselves pull from the IRS.
So, if you have a deal pending make sure that your clients payed the previous two years taxes otherwise you will find yoursel with a closing date looming needing only a tax transcript to complete the deal.
there is no way to expedite the process. Once the IRS recieves the tax return it takes them 4-6 weeks if filed by mail to have the transcript available or 2-4 weeks if filed electronically. obviously it would behoove you to have your client file electronically but the electronic filing service is not available from about october 20 to sometime in january. This applies to everybody, accountants included.
A word on the time it takes the IRS to make the transcrip available. From the time they cashed our payment check in November to the time they allowed the transcript to be pulled was about 3 weeks. This is well below the quoted 4-6 week timeframe an operator quoted me for mail in transcripts. So, basically times will vary depending on how busy the IRS is.
In sum; make sure your clients did pay for the previous two years taxes otherwise you may find yourself in the same situation. Again, there is no way to expedite the process, no special department of phone number. There is a special taxpayer advocate where you can try to get help and it may certainly be an option but its best to know that your client already paid prior to getting into a situation where you have to pull everything through at the last minute. Anyway, thanks to everyone who responded and gave support advice or insite.
I had the exact same problem, the tax transcripts showed up yesterday and the loan is funded and recorded, so it most likely will not be a problem, depending on when you need it to close.
That said, the seller can file chapter 13 and stop that foreclosure. This would not be the best way to do it. If I were your reator or if i were the lender on this one, I would be calling the lender that is doing the foreclosure, I would explain to them the situation and get them to stall the foreclosure. I have done this several times over the years. Do not be hard on your agent or loan officer if they did not know to do this, most would not.
If you are currently being represented by a broker, we cannot give you any real estate advice. It's a RESPA violation. Please talk to your broker/agent about the matter. He or she will find you help. The agents who responded below are answering your questions assuming you are not represented. Kudos to them.
Keller Williams Realty
12265 El Camino Real #180
San Diego, CA 92130
As long as you haven't removed your loan contingency by signing the contingency removal form you should be ok with your deposit. Good luck.
So-Cal Rebate Realty
C2 Financial Corp
Real Estate and Loan Professional
F: 619 489 0034
I had the EXACT situation happen with one of my buyers. He filed the return with the IRS the last week of October with the sale scheduled to close on 11/4. We were able to get the short sale lender (Wells Fargo) to grant an extension till 1/6/12. In the mean time, the sellers asked my client to rent the property until the close of escrow, as he was scheduled to move in that weekend. As of today, my client's return with the IRS has been processed, and is now reflected as so when his lender verifies income with the 4506T, which was roughly 4 weeks from when it was filed with the IRS. The IRS had given us the timetable of 6-8 weeks, and since it is off peak season for them it seems to have happened much quicker than that. Now I'm not saying this is what will happen for you, as each case is unique, but I wanted to give you some hope that it may. If this is the first extension requested on this short sale, I expect it to be granted. However, it always varies depending on which lender and how that negotiator is feeling when they receive the request. As long as the listing agent conveys to the short sale negotiator that all parties are committed to completing the sale, I would imagine they would accept your extension. I hope this helps and sheds some light on the situation.
KM Realty, Inc
3530 Camino del Rio North #101
San Diego CA 92108
I am assuming you have an agent? What does he or she say about the situation? The next question is if you are in escrow, have you removed all of your contingencies? I am assuming if your lender is requiring this information, then they have not given you full approval and you may have not removed contingencies. If that is the case, you should be able to cancel escrow and request your deposit be returned. If you have removed contingencies, then you may want to start looking into the status of the deposit with your agent and the listing agent. Just because you are cancelling does not mean you should lose your entire deposit. Best suggestion I have is to ask your agent all the pertinent questions about each worse case scenario and see how to handle it.
Jeff Smith | RealtorÂ® | Your Best Choice!
HÃ”M Sothebyâ€™s International Realty
16909 Avenida De Acacias | Rancho Santa Fe | CA | 92067
858.367.4333 direct | 858.756.1150 office | 858.756.1171 fax