Home Buyer Tax Credit Has NOT been extended. 6/18/2010

By
Real Estate Agent with Keller Williams VIP Properties BRE #01410130

Home Buyer Tax Credit Has NOT been extended. 6/18/2010

Home Buyer Tax Credit Has NOT been extended. 6/18/2010Despite what you're hearing, the federal home buyer tax credit has not been extended beyond its June 30, 2010 deadline to September 2010. Congress is trying BUT it hasn't happended yet.


When the tax credit was last modified in November 2009, Congress modified its language to read that, in order to be eligible, a homeowner must be under mutual contract for a home on or before April 30, 2010, and must be closed on said home on or before June 30, 2010.

A surge in April purchase activity created back-office back logs at the nation's biggest banks and an estimated 180,000 home buyers are finding out the hard way that lenders don't always clear conditions as quickly as you'd like. 60 days between contract and close, industry lobbyists reasoned, would be ample time to execute.  Turns out, they were wrong.

There's a lot of tax credit money at stake and Congress is trying to do something about it.

 
How A Tax Credit Extension Bill Becomes The Law 
The tax credit date change is not its own bill. The extension proposal is tagged onto a broader bill of tax policy extensions and federal program renewals.  This means that the fate of the home buyer credit won't be on the merit of the credit alone.

Under the amendment, they would get an extra three months to close -- useful for those who are experiencing delays in getting their mortgages approved or are somehow being affected by the many other issues that can arise and prevent a closing from occurring on time. The amendment would apply solely to buyers who entered a purchase contract by April 30.

It takes more than a Senate passage to extend the home buyer tax credit.  It takes a vote in the House of Representatives plus a signature from the White House, too.  So far, we're not there.

It's possible that the bill may not become law in time for June 30, 2010.  The extension has passed the Senate but there's still two steps to go (and loads of debate). Stay tuned and I will let you know when it's a done deal!

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
California Los Angeles County Santa Clarita Santa Clarita Valley
Groups:
RE/MAX Active Rain Bloggers
Agents who want REFERRALS!
ABR/REBAC
Diary of a Realtor
Tags:
home buyer tax credit

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
275,571
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator

Thank you and you are correct. Today, June 18th, it did pass in the Senate but now it has to go to the House. We'll be watching and ready to make that announcement. Here's the deal though - what they are talking about only covers homes that were already under contract before the end date in in April 2010. What we want is an extension to NEW sales.

Worse than this is Congress' failure to re-approve the National Flood Insurance program (NFIP) and to fund Section 502 Rural Development loans for residential properties in USDA designated areas. These are both expired and hundreds, if not thousands, of closings will not happen unless they are resolved.

Sen. David Vitter proposed pulling these items out of a massive spending bill to pass them stand alone Sen. Debbie Stabemore objected saying she and her team do not want to have these passed standalone - they want the massive spending bill to pass so they are leaving things like unemployment benefits extensions, NFIP and Section 502 bundled in that monster.

Jun 18, 2010 10:42 AM #1
Rainmaker
621,479
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Thanks for the clarification...a lot of wrong info is being passed along!   I think based on it being buried in the middle of the jobs bill tht it has a very long ways to go!   WIsh it was a stand a lone bill !!!

Jun 18, 2010 10:52 AM #2
Ambassador
1,924,650
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Laura..Just a few words of maybe and everyone thinks it has been passed..Great information here ! Thank you ..

HelpfulHannah

Jun 18, 2010 11:48 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
208,339

Laura Coffey

Keller Williams VIP Properties
Ask me a question
*
*
*
*
Spam prevention

Additional Information