Senate votes for an "extended closing deadline" for the Tax Credit.

By
Real Estate Agent with Coldwell Banker Residential

Yesterday, the senate voted to give buyers an additional three months to actually "close" their contracts that were already under contract by April 30th.  The measure is attached to another bill that has to be passed by the House.

The Senate, voted 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to September 30... but keep in mind, this is strictly for buyers who met the April 30 deadline to have a signed contract.

The prior deadline required buyers to close by June 30 in order to earn the $8,000 credit for first-time homebuyers or existing homeowners buying a new primary residence who were eligible for a $6,500 credit.

The purpose behind the extension, seems to be in order to benefit those buyers who purchased a short sale, and need more time in order to settle.

The proposal would not have a significant impact on future home sales as the extension would be only for home buyers who already had a contract in hand by April 30.

Now that it has passed the senate, it still needs to pass the house... but one step closer.

 

Posted by

 ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate

Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

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Rainmaker
173,561
Randy Landis
Retired in Samar - Tupelo, MS
Overseas Retirement Consultant

I'm glad you titled your blog correctly as many other have misleading titles. Thanks for the correct lead in.

Jun 17, 2010 02:21 PM #1
Rainmaker
189,018
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

It is my understanding that this has only passed the Senate at this time and that the House still needs to approve it, correct??

Jun 17, 2010 02:22 PM #2
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1,012,238
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Randy - I strive for accuracy..

Clint - yes, That's correct... I'll mention that above.

Jun 17, 2010 02:26 PM #3
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Debe Maxwell
www.AtHomesCharlotte.com | Savvy + Company Real Estate - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Alan!  As you said, one step closer--hopefully it will be passed so it'll give the lenders who have held up short sales so long time to make it right for the first time buyers who have had their Offers in since January!! 

Jun 17, 2010 02:43 PM #4
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Debe - true enough.

Jun 17, 2010 03:07 PM #5
Rainmaker
296,280
Sandy Nelson
Riley Jackson Real Estate Inc. - Olympia, WA
your Olympia area Realtor

That's great news, especially for first time home buyers waiting for a bank to approve a short sale.

Jun 17, 2010 08:47 PM #6
Rainmaker
722,750
Gene Mundt, Chicago-area Mortgage Lender - www.genemundt.com
NMLS #216987 - New Lenox, IL
708.921.6331 - 37 yrs experience

Alan:  There have been so many rumors about this and too many false hopes ... so it's great that you have clarified just what the vote was actually about and what was contained within it.  As I'm sure most of us are discovering, closings are backed-up, being put together very slowly, and totally frustrating.  Hopefully by lengthening the time period in which these tax credit closings can occur will help some ...

Great info ...

Gene

Jun 17, 2010 09:12 PM #7
Rainmaker
437,367
JL Boney, III
Russell and Jeffcoat - Columbia, SC
Columbia, SC Real Estate

I think if it passes it may tone down some of the madness that banks are going through at the moment.

Jun 17, 2010 10:19 PM #8
Rainmaker
117,447
Anne Clark
Metro Referrals - Gainesville, VA

Doesn't say much for the government's HAFA program that they have to do this, does it?  Just give the banks more reason to screw around on these short sale contracts.

Jun 18, 2010 12:28 AM #9
Rainmaker
562,503
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Alan,

This is cutting it close.  It also applies to certain new construction projects. If it passes it could help some of our clients.

Steve

Jun 18, 2010 12:43 AM #10
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Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Sandy - it could be good news... that remains to be sen.

Gene - we try for accuracy.

JL - yes, the banks would welcome the respite

Anne - I think it'll take a litte pressure off the title companies, too.

Steve & Joel - I wasn't aware of that.

Jun 18, 2010 08:55 AM #11
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Chris Ann Cleland
Long & Foster REALTORS®, Manassas, VA - Bristow, VA
Associate Broker, Northern VA

And so the request for back dating contracts will continue.  My God.  There is some common sense here though on the part of agents and their buyers.  I advised all of my buyers looking for that tax credit to stay away from short sales.  And they bought regular sales or foreclosures and got their tax credit.  Meanwhile, any buyer that wrote on my short sales was warned that they may miss out on the tax credit.  Short sales are the broken crutch in our business.  Do not rely on the outcome.  I can see BOA short sales having this thing extended well into next year.

Jun 18, 2010 09:54 AM #12
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Alan May

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