WASHINGTON - Homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal would only allow people who already have signed contracts to finish at the later date.

Reid introduced the proposal as an amendment to a bill that would extend jobless benefits through the end of November. Joining him were Sen. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn.

Reid, who faces perhaps the toughest re-election campaign of his political career, represents a state that has the nation's highest foreclosure rate.

The National Association of REALTORS® has been pushing hard in Congress for the extension. According to NAR, Mortgage lenders have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

"Time is of the essence," said Lucian Salvant, a spokesman for NAR. "It's important for Congress to get this done, because there's whole bunch of loans that aren't going to close on time."

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.


Written by:
Alan Zibel, Associated Press

Reposted from:
www.msnbc.com
Thanks to Germani Title for bringing this to my attention!

 

 
This post has been included in Rhode Island Real Estate News

3 Comments on Proposal would give more months to complete existing deals??

JUN
13
2010
954,012 Points 52 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Let's HOPE this extension is approved.   I THOUGHT the credit did not create THAT much extra business, but it STOPPED after May 1st, and is still pretty slow.
9:46am • #1
940,760 Points 26 Featured Posts Outside Blog Attended Rain Camp

I believe this is a good thing since there are about 55,000 home involved at this time. Move the homes
9:48am • #2

Joan and Harry,

   Thanks for the comments! The potential extension certainly won't hurt. We didn't see much of an up-tick in business either, and you are right, there is still a ton of inventory out there. Ideally rates stay low (that seems to be what drives the market these days) and more folks step up and find it to be the "right" time for THEM to buy a home. Not because there are "great" deals out there. When the buying decision is based on market timing it creates less buyer commitment and makes our jobs that much harder!
10:39am • #3


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Sean Wheelan

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