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ACAR works with HUD to help ensure closings before the Tax Credit Expiration

Posted on June 17, 2010. Filed under: Uncategorized |

In response the member concerns ACAR has been actively working with NAR and HUD to ensure closings occur prior the June 30th First Time Homebuyer Credit.  The Senate has passed a bill to extend the credit to September 30th, but it still needs to pass the House.   

We received a response to our concerns from the regional HUD Director today saying that clear steps are being taken to ensure GBS does its job to assist with closings, including contracting out if the volume is too large. 

The following is e-mail from ACAR was sent to NAR lobbyists and the HUD regional manager:

“Thank you in advance for your attention to a very important matter.  I’ve been contacted by a number of REALTORS® over the last 24 hours with some disturbing information about closings of HUD properties.   REALTORS® and their clients are now being told that loans will not be accepted by the HUD Title Company (GBS) before the middle to the end of July because they are simply too busy to get them all closed and they will therefore be ineligible to receive the Tax Credit.

 We know in the current real estate market that getting loans closed has been a challenge, but in many of these cases buyer’s offers were made and accepted in early April.  And now, regardless of when the process started, folks are being told that the closing will simply not happen by the June 30^th deadline.   Specifically if the documents were not at the Title Company (GBS) 30 days in advance, the property will not be closing until July – again after the tax credit time period has expired.   And to make matters worse, there isn’t any official notice of this problem until the Title Company is called to arrange the closing. 

We are receiving calls regularly on this now and it is clearly a widespread and significant problem.  This is clearly not the intent of the tax credit and a true disservice to the folks who have worked diligently to close by the June 30^th deadline.   This behavior is simply wrong and against the spirit of helping folks who have acted in good faith and truly need the tax credit. 

 The simplest action to take would be to allow another title company to handle the closing to help handle the volume.”

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