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I need to close by the end of the year for tax reasons. I will save about $10000. We verbally agreed to close by the end of the year (with bank approval), setting the closing date for the 15th as long as we allow the owner to stay xmas. Im worried the owner will delay until mid jan to avoid paying our mortgage/taxes even though they said they would close 2009. the contract is on or about which allows them to push it until jan 15th. My bank just approved the loan so i was wondering if there is anything i can threaten them with should they decide to start pushing things back to save a little money.
Oh boy.... if the contract "on or about" is on X... then they can be there till X and 30 more days as long as they can show something thats holding up. It can be minor too.... so all I am saying to you is plan ahead, and avoid future aggravation... I do not want to put a dampener on things, but there is a possibility that you may not be able to close this year.
If you are paying huge points to lower your rate, you can claim that on the 2010 return (that you file in 2011) too.
yeah, sounds like you can push but can't force it.
If you were thinking about the first time home buyer or move up credits, you can apply it retroactively. Although tax payments and interest you can't
Well its really the $7000 first time home buyer credit. The points i can write off anytime. The issue is that I don't qualify for it however my fiance who will be 5050 on the house with me will. However next year when we are married and filing a joint tax return, she will not be able to. Im assuming that closing before we are married but in the same year will disqualify her. I guess i was hoping there were some shady things people do at the closing table I could do being that i hear about things like that all the time.
Im worried the owner will delay until mid jan to avoid paying our mortgage/taxes even though they said they would close 2009.
I don't understand why they would have to pay your mortgage - after all it's not their mortgage - if you wouldn't be owning the house at that point. Also, the first half of RE taxes are due no later than January 10. After that there's an interest penalty. So there's no point in them holding up the closing for the taxes.
If you could clarify those points for me, that would help.
Well its really the $7000 first time home buyer credit. The points i can write off anytime. The issue is that I don't qualify for it however my fiance who will be 5050 on the house with me will. However next year when we are married and filing a joint tax return, she will not be able to. Im assuming that closing before we are married but in the same year will disqualify her. I guess i was hoping there were some shady things people do at the closing table I could do being that i hear about things like that all the time.
Unless it is a different program, you should be fine, Obama signed an extension into law in early November.
Quote:
President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.
The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.
I don't understand why they would have to pay your mortgage - after all it's not their mortgage - if you wouldn't be owning the house at that point. Also, the first half of RE taxes are due no later than January 10. After that there's an interest penalty. So there's no point in them holding up the closing for the taxes.
If you could clarify those points for me, that would help.
Well if we close on the 28th, they are legally allowed to stay in the house for 5 days. Any more than that and the contract states they need to start paying our mortgage +taxes daily. So being that they are allowed to stay until the 15th of january free of charge as long as they dont go into closing, there is a lot of incentive for them to push this thing back regardless of what they promised when the contract was signed.
Also the tax credit doesnt have anything to do with extentions. I currently make too much to qualify for it however my fiance doesn't so she can get it. However next year we are married and her salary will be added to mine and thats that.
Well if we close on the 28th, they are legally allowed to stay in the house for 5 days. Any more than that and the contract states they need to start paying our mortgage +taxes daily. So being that they are allowed to stay until the 15th of january free of charge as long as they dont go into closing, there is a lot of incentive for them to push this thing back regardless of what they promised when the contract was signed.
Also the tax credit doesnt have anything to do with extentions. I currently make too much to qualify for it however my fiance doesn't so she can get it. However next year we are married and her salary will be added to mine and thats that.
Not sure if this helps at all, but the income levels were increased as well $125,000 for single buyers, $225,000 for a married couple.
Why do people even put "on or ABOUT" in a contract?
Write the contracts with "on or BEFORE" ... take note all you homebuyers out there!
"On or About" actually usually works in favor of the buyer. If it is "on or before" and you don't close by that date (assuming that you have already delivered your mortgage commitment) you are at risk of losing your down payment.
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