It's June 29 today. Only 1 more day until the $8,000 tax credit expires. The House today passed a bill on to the Senate that would extend the tax credit until September 30 for buyers who have been unable to get their would be homes closed in time. I saw a video today that stated there are 200,000 buyers, 180,000 REALTORS and 97,500 loan officers who were unable to get tax credit deals done.
A lot of loan officers might want to go on vacation for awhile until everyone calms down!
I have 2 buyers who are going to miss out on the tax credit. The first was a difficult loan and I don't blame the lender. The second, on the other hand, was the lender's fault. They claim an underwriting guideline changed in the middle of underwriting the file and that they had to resubmit. We should be able to close on Friday for both buyers. Missing by 2 days is pretty aggravating and the only hope is that 99 senators (I think the Senate is only short 1) extend the tax credit to that all those people who tried to take advantage can still qualify. Given the number of short sales in my market, it is clear now that this should have been the time frame all along. Banks simply are not able to get short sale deals processed fast enough to allow a buyer to close in under 60 days. Even if the home went under contract in January, its probably still only 50-50 that it closes by June 30. I wonder how many deals will fall apart if Congress does not extend the tax credit deadline. In the very least, there will be about 477,500 unhappy constituents for any politician who votes against passing it.