Archive for February, 2012

Avoiding Time Traps that can stall your closing…

February 27th, 2012
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It’s that time of year again when we dig out all of our receipts, W-2’s etc and sit down for a date with Turbo Tax or our accountant to find out whether we will give or receive.  I devoted the better part of last weekend to filing out ours and my mother’s tax returns. 

 

The offices of the IRS get slammed with incoming this time of year and depending on how you file your taxes, it may take a mere few minutes or weeks for the IRS to acknowledge receipt.

This sets up a time trap for us in the mortgage business as we are now required to get IRS tax transcripts on all borrowers for the most recent two years.  If the borrowers are using the proceeds of a refund for their down payment, that will necessitate getting them for this year.  If not, then we can still use the transcripts for 2009 and 2010 to satisfy the requirement as long as they close prior to April 17th.  For anyone closing at the end of April, we will need to get those tax transcripts for 2011.   If you file electronically it’s possible to get them in a matter of days but if filed by snail mail, then it can take up to two or more weeks for the IRS to acknowledge receipt.  Then it will take additional time for them to review and make available tax transcripts.  This could delay a closing as there is no way around this particular requirement.  So if you’re working with a buyer who wants to close in the next 60 days, you may want to ask if they’ve done their taxes yet! Read the rest of this entry »

It’s what we all want. A successful closing with happy people.

February 20th, 2012
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 We all know that it’s important to get the buyer pre-approved but it’s equally important to make sure that the property will pass muster.  The purchase agreement becomes the strategic document that Realtors, sellers and buyers negotiate to insure a successful closing.  While failed financing often gets listed as the reason when a sale falls apart, if you take a closer look, the actual reason is often written or, perhaps more to the point, not written into the purchase agreement from the start. Read the rest of this entry »

The Boomer Generation is about to retire. The $64M question is, “where will they decide to live out their retirement years.”

February 13th, 2012
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A couple of years ago, on a layover coming back from Australia, I met a couple with a very interesting retirement philosophy.  They were in their early 50’s, had sold everything and were traveling the world with what they could carry in their backpacks.  They had climbed Kilimanjaro, hung out on a sheep station in Australia for a month, snorkeled on the Great Barrier Reef and planned to continue their world trek until they turned 60.  Their retirement would last precisely one decade.  Then, they were going back to work and planned to work until they died, if at all possible.  At 50, they were in excellent physical health could hike and get to places that would not be accessible to them as they aged, and they could better tolerate the deprivations required by seeing the world on a shoestring budget.  The crash of the real estate markets and double pull backs in the stock market of the last decade will have many Boomers rethinking their retirement strategies, but which way will they go?  Read the rest of this entry »

We've definitely moved away from the edge!

February 6th, 2012
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The uptick in activity for the month of January was nothing short of astounding.  Application volume was 600% higher than in a normal January.  Some of it is undoubtedly related to ‘the winter that wasn’t.’   Yet, there has been a definite shift in the mood of the folks that have been in to see us in recent weeks.  The belief is that we’ve moved away from the edge.   All of the fundamentals are falling in place to get the 6 Million Gen Y and Gen X buyers that are still living with their parents, to flee the nest.  Read the rest of this entry »