Tax Credit Extended!!

Reblogger William James Walton Sr.
Real Estate Agent with WEICHERT, REALTORS® - Briotti Group CT RES.0785956

Good news for buyers currently under contract to close before April 30 and have yet to close - there's a bit more breathing room.

Original content by Kelly McGovern MA #9088843 RI#S32765

It's passed!!!  As long as you have a signed sales agreement dated on or before April 30, 2010 you now have until Sept 30th to close!!!  see below newsflash from inman news:

Senate OKs new tax credit closing deadline

Backers of amendment cite backlog of 180K homebuyers

By Inman News, Wednesday, June 16, 2010.

Inman News

The Senate has amended a bill to give homebuyers who were under contract on a home purchase by April 30 an additional three months to close the deal 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.

The amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" -- which primarily extends unemployment insurance benefits -- was approved in a 60-37 vote Wednesday. The vote was mostly along party lines, with only four Republicans in favor and one Democrat opposed.

"While I am disappointed that more Republicans did not support this common-sense measure to strengthen the economy and reduce the deficit, I am committed to ensuring that more Nevadans and Americans can become homeowners and that this amendment becomes law," Reid said in a statement.

The House passed an earlier version of the bill in December, and the Senate approved its own version in March. The Senate is currently working on resolving differences between the two bills.

The National Association of Realtors supports the amendment, saying Realtors have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.

The amendment does not extend the deadline for homebuyers to qualify for the tax credit, NAR said in urging lawmakers to approve it, but simply extends the deadline for closing transactions already in contract.

"Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs," NAR President Vicki Cox Golder said in a statement.

There has been some speculation that some homebuyers will attempt to submit fraudulent claims for the tax credit by backdating documents showing they were under contract by April 30, and that extending the deadline for closing would expose the government to more fraudulent claims.

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Loreena Yeo
3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co. - Frisco, TX
Realtor® | Frisco TX Community Ambassador

Awesome news. The one client that would have benefited from this decided to walk away from the contract and write an offer on a nicer property. I concurred!

Jun 16, 2010 11:31 PM #1
Rainmaker
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Kristen Wheatley
The Maine Real Estate Network - Auburn, ME
Lewiston/Auburn Maine Real Estate Agent

From the news sources I saw, it still has to go back to the house for final approval.  Almost there, but not yet.  They expect to vote on the reconciled version in the House before June 30th.

Jun 16, 2010 11:34 PM #2
Rainmaker
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Rick Cignoli
Norcom Mortgage - Watertown, CT
Sr. Mortgage Officer

William ,,, Kristen is right. The Senate actually voted against extending the bill that included the amendment extending the Tax Credit. It's back to committee to be re-worked and then the House has to work on it too! So we have a little way to go before buyers and realtors,  can celebrate.  Rick

Jun 17, 2010 12:25 PM #3
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William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Thanks Rick and Kristen for the clarification. Wow....

Jun 17, 2010 12:49 PM #4
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William James Walton Sr.

Greater Waterbury Real Estate
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