The Perfect Storm

A lot of real estate buyers are headed for “The Perfect Storm”… Don’t get caught in it!

At the end of November 2009 there is going to be an avalanche of escrows trying to close by December 1st that potentially can overwhelm the escrow companies. Many may not make it and here is the scenario:

     1. First Time Home Buyers Tax Credit ends 12/01/09 (assuming it is not extended)
     2. New Lender Rules Allow for a 3 Day Right of Rescission and possible delays
     3. Lenders are currently backed up and slow at closing loans

As we close in on the deadline for the tax credit of 12/1/2009 (see link above) keep in mind you will have to be in contract with a home by approximately the first part of October to close by 12/01/09, don’t expect the IRS to be benevolent if you close a day or two late.

With the new Lending rules you could end up with a 3 day delay if your lender makes any mistakes. Most lenders are backed up and not closing loans on time due to myriad rule changes and short staff.

Because most lenders attempt to close at the end of the month we are forecasting a perfect storm that is going to cause a lot of home buyers a devastating blow due to late closings.

Our recommendation is for you and your real estate agent to ensure that your lender has disclosed everything properly and you loan in formally pre-approved well in advance, lock those interest rates as early as possible.

Last and most important… Close early. Take a look at your calendar... the last day of the month is November 30th, that is a Monday, Thanksgiving is on Thursday November 26 and that is going to back up the entire week due to escrow companies, the County Recorder and banks being closed both Thursday and Friday.

"We highly recommend that your closing should be no later than Thursday November 19th allowing for the avalanche of closings expected in the last week and any delays that could occur."

Experienced Real Estate Brokers always on the lookout for our clients... what's your agent doing for you?

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