$8K Tax Credit Closing Deadline of Nov 30 Could Slow Interest in Short Sales

Kary brings up an excellent point here. 

“One other agent short sale issue is going to pop up shortly, if it hasn’t already, but it will be a buyer’s agent issue. The $8,000 first time home buyer credit needs a property to close by November 30. Making an offer on a short sale property, without advising a first time homeowner of the risk of not closing by the deadline is probably malpractice. It’s sort of a “suitability” issue for real estate.”

It’s not outside the realm of possibility that falling in love with a short sale today means the transaction may not close by Nov 30, 2009.  I suppose there might be a chance that the tax credit will be extended or even expanded.  Yet many homeowners with Option ARMs were given verbal assurances that they would be able to easily refinance. 

I wonder what life is going to be like inside loan servicing during the month of November, when the pressure will be sky high to get these short sales APPROVED so the buyers can make the closing deadline?