What in the world is a furlough (pronounced as "fer-lo") day? Most of you who've been through a real estate transaction know that it is a term referring to courthouse closure.
In a real estate sale, a property isn't considered sold until it gets recorded. This also means that if you are the selling party you will not get your funds until it gets "officially" recorded and as a buyer, you can't get the keys until the funds gets dispersed.
Since the economic down turn, some public sectors (i.e. government) have created created a day off, a measure to work around employment expenses by having a non-paid day off for its employees. What does this have anything to do with us in real estate? It can affect our closing dates and can cause unnecessary stress if not seriously considered when determining closing dates.
From any given perspective having an un-intended closing date falling on or near a furlough day can create momentary havoc and frustration when closing gets deferred especially if there are other events depending on this one closing date, i.e. first time home buyer's tax credit, a contingent sale of another resident, moving trucks due to arrive, rate locks. The potential worst case scenario is that one can either lose a buyer or a house; the buyer can lose their Ernest money deposit and/or loose a rate lock; or a lost opportunity for a one time deal or benefit(s).
So, when you plan for a closing date not only should you include your vacation days but a furlough day or two.
In a real estate sale, a property isn't considered sold until it gets recorded. This also means that if you are the selling party you will not get your funds until it gets "officially" recorded and as a buyer, you can't get the keys until the funds gets dispersed.
Since the economic down turn, some public sectors (i.e. government) have created created a day off, a measure to work around employment expenses by having a non-paid day off for its employees. What does this have anything to do with us in real estate? It can affect our closing dates and can cause unnecessary stress if not seriously considered when determining closing dates.
From any given perspective having an un-intended closing date falling on or near a furlough day can create momentary havoc and frustration when closing gets deferred especially if there are other events depending on this one closing date, i.e. first time home buyer's tax credit, a contingent sale of another resident, moving trucks due to arrive, rate locks. The potential worst case scenario is that one can either lose a buyer or a house; the buyer can lose their Ernest money deposit and/or loose a rate lock; or a lost opportunity for a one time deal or benefit(s).
So, when you plan for a closing date not only should you include your vacation days but a furlough day or two.
Events to consider when choosing a closing date:
- Beginning and ending of the months are chaotic for escrow and lending
- Government holidays
- Weekends
- Furlough days
- Qualified first time home buyers $8,000 tax credit must close by the 30th or on or before the 25th of November
- Preplanned personal events, i.e. graduation, weddings, etc.
- Rate lock expiration day; some lenders will not allow for extensions
- Benefit and incentive expiration dates
Courthouse closures:
- Monday October 12, 2009
- Wednesday November 11, 2009
- Wednesday-Friday November 25-27, 2009
- Thursday December 24-25, 2009
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