Congress Expected to Extend Closing Deadline For Homebuyer Credit Thru September 2010

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Mortgage and Lending with John Tuggle, Senior Mortgage Loan Originator, Envoy Mortgage, Ltd. NMLS# 211187

The US Senate has amended a bill to give homebuyers who were under contract on a home purchase on or before April 30, 2010 an additional three months to close the transaction and claim the Federal Homebuyer Tax Credit.  Extending the deadline for closing from June 30 to Sept. 30 would allow lenders more time to clear a backlog of 180,000 homebuyers nationwide, said amendment sponsor Sen. Harry Reid, D-Nev.  No extension to  the deadline for qualifying for the credit (April 30th, 2010) was approved and Congress is not expeted to do so.

The nations mortgage lender backlong is at record levels due to industry staff reductions over the last couple of years along with the record number of contracts to purchase and mortgage loan applicatiions placed into process due to the end of the tax credit.  The legislation was supported by the Mortgage Bankers Association and the National Association of Realtors.  

Also in the legislation are provisoins to expand documentation requirements for the first-time homebuyer tax credit to require taxpayers to attach property tax bills, contracts, and other documentation to their tax returns when claiming such credit. These measures were sought by the Internal Revenue Service to assist in reducing fraudulent attempts to access the tax credit.

The US House of Representatives has already passed similar legislation and sources from both legislative bodies expect conference committees to complete and approve one compromise bill for the President's signature and enactment as law prior to the July 4th, Holiday.

(c) 2010 by John Tuggle.  For Re-Print rights please email mrjohntuggle@msn.com

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Rainer
22,329
Kim Espinoza
Realtor, United Broker's Group, Arizona - Chandler, AZ
Connecting Arizona Buyers and Sellers

Well this certainly helps the buyers in Arizona!  Those buyers who wrote contracts on short sales have been waiting patiently with their bottle of tums!  Now they can relax a bit. Seems hard to believe that there are 180000 loans waiting ...... but anyway.

Jun 16, 2010 08:49 PM #1
Ambassador
1,295,281
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

John - I am waiting to see this come through the Congress!   It is crazy how many folks are stuck in this clogged machine.  At least my buyers have their commitment letters, they're being held up for various other reasons, so this will be nice!

Jun 16, 2010 09:21 PM #2
Rainer
241,526
Michele Miller ~ REALTORĀ®, LMC, HSE, CHS, SRES, CMRS
ERA Key Realty~Worcester County Realty Group - Worcester, MA
'Helping You Make the Best Move"

John,

Great blog! I really wish this was extended for new homebuyers to look for a home now though.

 

Jun 16, 2010 10:13 PM #3
Rainer
407,122
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Should help thousands who were stuck in the "waiting"zone hoping for someone to speed things up.

Jun 16, 2010 10:15 PM #4
Rainmaker
5,342,706
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I do not think the deadline should be extended. Everybody knew about the deadlines. It will be an open invitation for more fraud in the real estate business.

 Blooming for Maryland home buyers.

Jun 16, 2010 11:24 PM #5
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John F Tuggle

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