With the tax credit deadline for signed purchase agreements being today, I know there are a few buyers scurrying around trying their last efforts to find a home to buy in time. From what attorneys have told me, contracts need to be fully executed (signed) by both Buyer and Seller before 11:59pm today and then close by the end of June.
In cases of a short sale, the 3rd party approval that’s required is treated just like any other contingency – so long as the purchase agreement is fully executed by today, bank approval and subsequently the closing can occur up till the end of June.
For anyone who finds a house this weekend or next week and thinks about backdating the signatures so that the purchase appears to qualify for the tax credit, please keep in mind that you are dealing with potential violations of federal tax law as well as mortgage fraud, wire fraud and others.
Oh yeah – I’m not an attorney or tax professional, please seek their advise for any legal or tax advice.
