One Hundred and Eighty Thousand Homes Still to Close

photo credit: TheTruthAbout...

Many people are thanking their maker that the president and congress gave everybody an extension on the Tax Credit. Around one hundred and eighty thousand home buyers who entered into a contact during the Tax Credit period have still not closed on their homes. With a typical closing taking an average of 30 days, for some reason the average sale has been closing at or above 60 days.

There is a backlog in the system, the financial system that is. Much of the problem is coming from a slow sellers lender on a short sale; soon we may have to rename the process to "cheaper but longer sale." Many buyers are also experiencing hold ups by their financing institutions. No surprise there. Many have also encountered delays in the appraisal process. There are also lapses in the National Flood Insurance Program.

So, now that we have an extension on the Tax Credit one would think that the afore mentioned 180,000 people would sail through the sale of their new homes, but what many are forecasting is that our new September deadline will be met with just as many incomplete purchases due to these continuing backlogs. I dont understand, with the government helping us purchase new homes whats the hold up?

Read the full story from Inman News

Posted on July 19, 2010 13:14:16 by Blog Author