Many can now realize the American dream of homeownership with the extension of the Homebuyer Tax Credit deadline.
On the night of June 30, Congress finally approved an extension of the Homebuyer Tax Credit deadline with the Homebuyer Assistance and Improvement Act (HR 5623). The deadline to close on a property bought by April 30, 2010 was formerly June 30, 2010. As lenders were all too slowly closing these deals — mostly short sales — Congress has extended the deadline for close of escrow another three months to September 30, 2010.
This is great news for first-time and repeat homebuyers fitting the guidelines for the credit who were becoming worried that the $8,000 tax credit (or $6,500 credit for repeat homebuyers) would be lost due to slow lender short-sale approval and other reasons causing closings to be delayed. This much-needed deadline extension should give lenders time to approve and buyers time to finalize property closings for all transactions that have ratified contracts in place as of April 30, 2010 that didn’t close by June 30.
National Association of Realtors (NAR) states that “Extending the tax credit closing deadline will help provide additional stability to real estate markets across the nation.”
Vicki Cox Golder, NAR President, was excited about the extension, stating that she knows that ”up to 180,000 homebuyers eligible for the tax credit are rejoicing.” With a hint to the 4th of July holiday, Golder further notes: “What a great way to begin celebrating our nation’s most patriotic holiday by opening the door to the American dream of homeownership to thousands of homebuyers who would have been shut out of the homes of their dreams through no fault of their own.”
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