Homebuyer Tax Credit - Closings to be Extended until September 30th

By
Mortgage and Lending with Sierra Pacific Mortgage Raleigh

Drew does an excellent job sharing good news with us all and even includes a break down by state of how many transactions would have lost out on the tax credit.

Well Congress finally got their act together on something.

Both the House & Senate approved a bill to allow homebuyers with purchase contracts dated by April 30, 2010 to close on their transactions until September 30, 2010.  THe bill is now on its way to President Obama to be signed into law.

Why the extra time?

According to the National Association of Realtors, approximately 180,000 homebuyers would lose out on the credit as they can't close by the current June 30th deadline.

NAR blames backed up lenders, delays in Flood Insurance and the Rural Development programs and new construction issues as the primary reasons homebuyers can't close.

Here's NAR's 180,000 list broken down by state:

Alabama, 2,590; Alaska, 830; Arizona, 5,440; Arkansas, 2,090; California, 17,700; Colorado, 3,390; Connecticut, 1,770; Delaware, 400; District of Columbia, 300; Florida, 14,830; Georgia, 6,270; Hawaii, 710; Idaho, 1,270; Illinois, 7,030; Indiana, 3,560; Iowa, 2, 030; Kansas, 1,840; Kentucky, 2,540; Louisiana,1,800; Maine, 840; Maryland, 2,630; Massachusetts, 3,930; Michigan, 6,470; Minnesota, 3,760; Mississippi, 1,530; Missouri, 3,600; Montana, 760; Nebraska, 1,110; Nevada, 3,800; New Hampshire, 690; New Jersey, 4,300; New Mexico, 1,160; New York, 9,190; North Carolina, 4,890; North Dakota, 460; Ohio, 8,510; Oklahoma, 2,760; Oregon, 2,090; Pennsylvania, 5,830; Rhode Island, 500; South Carolina, 2,460; South Dakota, 500; Tennessee, 3,910; Texas, 15,340; Utah, 1,130; Vermont, 400; Virginia, 3,890; Washington, 3,190; West Virginia, 940; Wisconsin, 2,690; and Wyoming, 390.

What about all the buyers that have contracts on short sales? 

Short sale can easily take 4 months or longer to close.  So, if a homebuyer entered into a purchase contract in April, there's a very low chance they would be able to close by the current June 30th (today) deadline. 

A good portion of short sales will be lucky to be able to close by the soon-to-be extended deadline of September 30th.

Now if only Congress could get its act together on the Flood Insurance issue...

MORTGAGE, EXPERT, MICHIGAN, BIRMINGHAM, BLOOMFIELD, DETROIT, ROCHESTER, ROYAL OAK, TROY

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Drew Sygit: CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MAMP Instructor & Speaker
The most Certified Mortgage Expert in the Midwest

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P: 248-356-3739 • F: 866-215-3755 • dsygit@TheLendingEdge.comwww.TheLendingEdge.com

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Rainmaker
501,331
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

This is great news for the industry, thanks for the post!

Jul 01, 2010 12:09 AM #1
Ambassador
1,260,693
Debe Maxwell
www.AtHomesCharlotte.com | Savvy + Company Real Estate - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Nevin!  I had one who ALMOST didn't make it and she would have had a HISSY fit if her short sale hadn't been approved so that she could Close before 6/30.  So, I know there are plenty out there like her awaiting the slow approvals!

BTW--thanks for the info on the last client.  I sort of figured that was going to be a problem.  Keeping fingers crossed that he gets things worked out in the future though--really nice guy!

Have a great Fourth!

 

Jul 01, 2010 12:42 AM #2
Rainmaker
401,529
Nevin Williams
Sierra Pacific Mortgage Raleigh - Raleigh, NC
Raleigh Mortgage Pro

Dan - Drew wrote it, I just reblogged it so I hate to take the credit!  Thanks

Debe - You're welcome.  he has a few things to work on but we'll get him into a home soon : )  Thank you for the referral!

Jul 01, 2010 12:55 AM #3
Ambassador
993,253
Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

Great choice for a re-blog Nevin. Drew did a wonderful job with this post. I closed yesterday on one who would have missed the credit had it not been extended. Talk about cutting it close!

Jul 01, 2010 10:38 AM #4
Rainmaker
69,573
Loan Survivor Real Estate Financing Expert
Purchases, First Time Buyers, Pre-Approvals, Refinance - Birmingham, MI

Nevin, thanks for another reblog!

Jul 02, 2010 08:25 PM #5
Rainmaker
401,529
Nevin Williams
Sierra Pacific Mortgage Raleigh - Raleigh, NC
Raleigh Mortgage Pro

Craig - Thanks.  Drew did a great job with this post!

Drew - You are welcome and good job on a well written blog post

Jul 06, 2010 12:18 PM #6
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