The Senate has passed a bill to give homebuyers another three months to close on their homes and receive tax credits up to $8,000. The Tax Extenders Bill would apply to homebuyers who met the April 30, 2010 deadline with a signed contract to purchase a new or existing primary residence. The amendment would extend the deadline to September 30, 2010 for homebuyers to close on their real estate transaction. The previous deadline was June 30, 2010. The bill is now sitting in the House of Representatives, where it is expected to pass should it actually get voted on in time.
The National Association of Realtors estimates that as many as 180,000 homebuyers have qualified for the tax credit and met the contract deadline of April 30, 2010, but might not be able to close their transaction by the June 30, 2010 deadline due to the sheer volume of loan applications in the pipeline.
Many of the short sale lenders out there that I have been working with are telling me that they are having delays in getting their approvals out because of the number of folks who are wanting to close by June 30th.
Many buyers are rushing trying to close escrow as quickly as possible…sometimes foregoing inspections on the property. I highly recommend that all buyers due their due diligence and take the time to inspect the property they are buying because there could be something worng with the property that may actually cost you more than the tax credit that you should know about.
Some loan agents out there are trying to speed the process up by whatever means they can to help their clients meet the deadline. Some things are good, others not so much in my book. Buyers beware.
The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor.
The great guys at TBWSDaily.com have a great daily video about this in their June 24, 2010 archive if you want to check it out.
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