Minnesota Short Sale Expert

There has been some confusion about the deadline of April 30th with regards to short sales and a buyer qualifying for the federal tax credit. After much discussion and checking with tax professionals these are some of the details that need to be addressed….

• The purchase agreement must be written and fully executed by April 30th.
• Fully executed means ‘whoever needs to sign on the purchase agreement”….buyers & sellers.
• In a short sale transaction the bank does NOT sign the purchase agreement so when the sellers and buyers sign the contract this becomes a fully executed and legally binding contract.
• As long as the contract is fully executed by April 30th and closes by June 30th…even if it is a short sale and does not yet have full bank approval…the buyer will still qualify for the tax credit.

I always recommend consulting a qualified tax accountant/CPA that is up to date with the most current tax laws to verify how your situation may differ. If you have any questions please feel free to contact me directly.