Buyers not to blame for missing tax-credit deadline

Re: 'Hope alive for extension of tax credit deadline' (June 25)

Dear Editor:

I am at the end of a sale and am holding my breath in hopes that my client will settle by the June 30 deadline.

My client has done everything possible to cooperate with the lender, but the problem is on the lender's side. Apparently, they have too may loans to close and the lender sat with my client's file on a processor's desk for nine days without it even being touched by the processor (so I was told by the loan officer).

As a result, the file was sent out late to the Pennsylvania Housing Finance Agency (PHFA) for an approval on a grant, which my client is qualified for and needs in order to close on the sale.

Unfortunately, PHFA is also swamped and it is not expected that the approval will come in on time. PHFA stopped taking rush requests, so the buyer will more than likely miss the deadline by days, through no fault of his own.

Although my client had his contract to the lender by the April 30 deadline, the lender was not prepared for the influx of contracts. The lender is a major, well-known national bank that did not meet the demand for services required to uphold the guidelines set for the $8,000 tax credit.

I do not think that my client should be penalized for the total lack of foresight in trying to cram these deals through in such a short period of time. This is like trying to herd thousands of cattle through a single-file chute to board on a train in a half hour, with the train taking off as the line is, at best, half-boarded and the conductor waving goodbye!

It is my opinion that we should go the distance and see that this is done right, and not just for some of the buyers who have been lucky to get their purchases to closing before the deadline.

Janet Krauss
Next RE and Keller Williams Real Estate
Philadelphia, Pa.

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