Today is the final day for me to receive the first time home buyers credit. I am in the process of purchasing a short sale condo. The owner signed off on the contract and the first bank signed off on the contract, but there is a second bank that has not signed off. Am I still eligible since the bank holding the first mortgage approved the sale or do both banks have to approve before the April 30th deadline?
1 Answer from Attorneys
You must enter into a contract to buy by 4/30 and close on the home by 6/30. See http://www.irs.gov/newsroom/article/0,,id=204671,00.html