Orlando Real Estate - Blog

Rachel Nacion-Ograyensek and her husband are getting nervous. The house that the two apartment dwellers want to buy -- the one with the double oven, pool and tiled patio -- may slip away from them.

It's on the market as a short sale, so the owner can't act until the mortgage holder approves the discount price. But the Altamonte Springs couple insist on buying their first home in time to take advantage of the federal government's homebuyer tax credit, which now expires April30.

"The house is our dream house -- it's perfect for us," Nacion-Ograyensek said. "We are trying to get in on the tax credit, but it's done in April, and it's already February. We've gotten to the point where we're passively looking for other houses, but none are quite right."

Under pressure from the real-estate industry, Congress extended and expanded the tax credit last fall. It was to have ended Nov.30 and benefit only buyers who had not purchased a home in the past three years. Like the original, the latest version is worth as much as $8,000, but it gives both "first-time" buyers and qualified existing homeowners until April30 to secure a contract on a home, and until June30 to close the deal.

Though real-estate agents and homebuilders hope the measure boosts sales, as the previous version was credited with doing, some fear that buyers intent on getting a short-sale bargain will not make the new deadlines.

In the Orlando area, 67percent of Realtors' existing-home sales in December were distress sales -- and about half of those were short sales, known for taking at least three months to complete. Even buyers who nail down a contract with the seller by the April30 deadline can't be sure the purchase will close within the required two months. complete story

Source: Orlando Sentinel - Scott Powers

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