Window Closing On Minneapolis Duplex Short Sales

Open white windowIf you’re looking to purchase a property in time to qualify for the $8000 first time home buyer tax credit, it’s time to dive for the closing window; especially if you’re interested in a duplex that’s a short sale.

A short sale property is one that can’t be sold for an amount equal to what the seller owes.  The seller may or may not be delinquent on the payments. In either case, selling the property usually requires lengthy, drawn out negotiations with the lender or lenders who hold the note.

On average, most short sales seem to take about 90 days to resolve. However, some may take as long as six months, depending on the banks involved.

With the tax credit set to expire on November 30, and loans and title work taking, on average, 30-45 days, a 90 day negotiation would put closing on a duplex well past the deadline.

This is bad news for short sale duplex sellers, as many agents have been steering their first time home buyers away from short sales for several weeks for this very reason.

Of course, every cloud has a silver lining. And a patient investor who writes an offer now may reap huge benefits when the rush for the tax credit exit is over.