Buyers have been on pins and needles waiting to hear if the Home Buyer Tax Credit would be extended. The Senate has approved an extension until September 30.
Many buyers signed contracts on properties to purchase, prior to April 30. As long as they closed prior to June 30 they were eligible for the federal tax credit. However, the system got bottlenecked, as lenders became backlogged with the large number of properties under contract. Short sales closings were also delayed as short sale lenders were unable to deal in the high volume of property files they had on their desks. So, tens of thousands of homebuyers were not able to meet the June 30 deadline, through no fault of their own.
The extension, which must be signed by the President, will give purchasers that already had houses under contract prior to the April 30 deadline until September 30 to close, under The Home Buyer Assistance and Improvement Act (HR 5623).
The US Senate also approved the National Flood Insurance Program Extension Act of 2010 (HR 5569). This will extend the National Flood Insurance program until September 30. Closings across the nation have been delayed for buyers purchasing properties in flood plain zones, as their mortgage companies will not extend financing without flood insurance.
This bill, also to be signed by the President, will be retroactive to June 1, 2010.
Sandy Shores Realtor, Melbourne FL Real Estate
Brevard County Real Estate and Investing
I specialize in Residential, Investment and Relocations.
We have a team of professionals to facilitate your Short Sale.
I buy, sell, rent, own and manage Investment Property.
that for you
This is the first decent thing I've seen come out of our government in some time...
Sandy
The tax credit extension will help close a lot of the contracts that are out there not closed.
Good luck and success.
Lou Ludwig
Sandy - The tax credit extension saved a lot of antacids, much needed!
Hi Sandy,
My wife Sharon just closed her toughest short sale at 4pm on Wednesday. It was touch and go right up the the end as both lenders were quoting FHA regulations to have the HUD statement their way. It is nice to know that homeowners who are undergoing similar frustrations can still get the tax credit with the new extension, in case they didn't get their transaction closed by June 30th.
Have a Happy Fourth of July with your family, Sandy!
Paul, This is certainly good news, isn't it?
Lou, I think that this will help immensely.
Wendy, So true, we can save a couple of bucks by not having to buy that extra bottle, can't we?
Bruce, Congratulations to Sharon in getting that short sale closed. They are no easy task that's for sure. And you never really know until you walk out of the closing, whether they are truly going to close or not, do you?