Ar_home_b_search
 

House on moneyHome Buyer Tax Credit Extension - Buyers May Still Get a Break 

 

Some home buyers and their Realtors® have done everything possible to plan for a tax credit at the closing table. But, even the best laid plans can sometimes have their glitches.  

As the predetermined June 30th deadline approaches for the Home Buyer Tax Credit, some buyers are living with the possibility that they may be disqualified from actually getting this promised incentive.  

What can happen to derail such a well-laid plan?  Ah, so many things. There are title issues, the time that a bank needs to process a loan, and let's not even talk about short sales.  

Right now, over-burdened banks have been trying to meet the deadline yet there is currently a backlog of 180,000 home buyers nationwide waiting to close.  According to the National Association of Realtors, as many as one-third of qualified buyers have been told by their banks that they will not be able to close by June 30. 

To the potential rescue, Senator Harry Reid (Democrat from Nevada) has sponsored a bill that will give buyers an additional three months to close.  The amendment extends the deadline to September 30, allowing more time for title searches to be completed and loans to be completed. 

Senators have voted 60 to 37 to approve of the measure giving this additional three month grace period to buyers to get all of their ducks in a row. 

However, it is not exactly a done deal.  The measure will still need further approval as well as passage in the House.

Copyright 2010 "Home Buyer Tax Credit Extension - Buyers May Still Get a Break"

Subscribe to my blog

Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230

Find the Right Buyer Broker in MetroWest Massachusetts

MLS Property Search With No Registration Required 

Twitter Claudette Millette Claudette Millette  Facebook Claudette Millette   

 

 
Post is included in group: "Whacked"!!!
Post is included in group: The Lounge at Active Rain
Post is included in group: Buyer Information - What Buyers Need to Know in Today's Market
Post is included in group: Almost Anything Goes
Post is included in group: Addicted to Active Rain

11 Comments on Home Buyer Tax Credit Extension - Buyers May Still Get a Break

JUN
19
2010
2 Featured Posts Attended Rain Camp

Great Information--Yes hopefully the House will realize this will help the consumers!!

Jen
1:26pm • #1
129,455 Points 3 Featured Posts Called Shot Master

Unfortunately, many people have the impression that the June 30 deadline has been exteneded.  While I think there is a strong liklihood that the House will pass it and the president will sign it, that has NOT happened yet.  Back in late 2009 when the tax credit was extended, I thought that two months would allow plenty of time for transactions to close.  I also figured that people interested in the tax credit would stay away from short sales because of the time constraints.  But obviously there is a backlog and an extension of the time to close would help take the pressure off banks, agents and title companies.
1:39pm • #2
405,825 Points 49 Featured Posts Outside Blog Called Shot Master

I have a buyer who is closing on July 23rd.  She is crossing her fingers that this bill passes since the contract was ratified on April 27th.  I hope it passes!
1:47pm • #3
395,027 Points 35 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

Jen:

I think they will realize it and probably pass it. It seems to be the best thing for them to do politically.

Dan:

People tend to jump on the headlines very quickly and the headline last week said that it had been passed. It had, but only in the Senate.  Two months used to be plenty of time for a transaction to close but now that is often a bit tight.

Cynthia:

I hope your buyer makes it on time to get the tax credit. I do think they will more than likely extend it.

 
2:47pm • #4
707,319 Points 36 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

I'm glad that the buyers that got in before the deadline, still has the time to close and get the credit.
3:06pm • #5
395,027 Points 35 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

Steve:

Yes, hopefully they will get the three month extension so that they can still get the tax credit even if their closings go beyond the original June 30 deadline.

 
5:13pm • #6
768,800 Points 60 Featured Posts Attended Rain Camp Called Shot Master

Buyers who followed the rules of the original tax credit, but couldn't close because of circumstances beyone their control, shouldn't be penalized and miss out.

Of course I don't know how this could have happened. Surely the banks sped up their short sale and foreclosure practices in anticipation of the onslaught of buyers trying to close before June 30th.......right?!!!
6:08pm • #7
890,684 Points 20 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Claudette, I sure hope this bill is approved because many first time buyers worked hard to meet the April 30th deadline so it would be sad if the tax credit is denied because the June 30th date cannot be met.
10:43pm • #8
JUN
20
2010
708,942 Points 63 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Claudette... I know of several buyers of short sales who are racing to meet the June 30 deadline.  A bit of breathing room would certainly make everyone's life simpler!
6:15pm • #9
395,027 Points 35 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

Craig:

If only that were true. Banks have continued to operate at a snail's pace when it comes to short sales.

Jennifer:

You are right about that. First-time buyers and also some repeat buyers who were qualified to get the $6500. I hope they do not have to lose out because their banks could not close their loans in time.

Steve:

I think the difficulty with short sales closing on time has been a motivator behind this extension. It's only three months - I would think they would grant it.

 
10:38pm • #10
JUN
21
2010
1,139,505 Points 76 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Claudette:  I can't see anyone having a problem with extending this for the buyers that were under contract before April 30th.  I'm sure it will pass.
10:41am • #11

What does the graphic say?

Leave a response…

(optional)
What does the graphic say?
 
2009_head_shot Rainmaker_large

Claudette Millette - Metrowest Mass Buyer Broker

Ashland, MA

More about me…

The Buyers' Counsel

Address: 27 Thomas Street, Ashland, MA, 01721

Office Phone: (508) 881-6230

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog

Find MA real estate agents and Ashland real estate on ActiveRain.