On Tuesday, the House of Representatives voted to extend the deadline of closing escrow for those in contract to receive the homebuyer tax credit. If you recall from earlier this year, the First time home buyer tax credit required a buyer to have an accepted offer by April 30th and close escrow by June 30th. Well, there is still a large number of buyers that are in escrow and have not closed yet. Without this extension, those buyers would miss out on the up to $8,000 credit. Now, those buyers have an extra 90 days to get the deal closed by the end of September.
Why haven't they closed yet you ask? Well, most of those escrows are for short sales that take a long period of time to get lender approval. Now those buyers that have been patiently waiting are being rewarded with an extra 90 days to finish the purchase. This will help many current short sale deals in the Sacramento area that are in that situation. I currently have a listing in Fair Oaks right now that has a buyer in that category. She didn't absolutely need the credit and wasn't necessarily counting on it when she originally submitted the offer. I warned her going in that we might not be able to get lender approval fast enough. She understood but now is excited about that fact she might be able to get the credit after all.