Updated July 1 – Now the bill has passed both the House and the Senate, and is headed for the President’s desk. Provided you were under contract by April 30th, you would NOW have until September 30th to receive the buyer credit rebate. Whether you like the credit or not, it looks like it’ll be extended.
As far as I can tell, the only people this really helps is buyers who have been waiting on short sales to close. Short sales often take a notoriously long time to close, and so a buyer who went under contract on, say, March 3, might still be waiting for closing papers. Perhaps there are some other buyers who for one reason or another weren’t able to meet the June 30th closing deadline, but my guess is that this extension will most help short sale buyers, and hurt the deficit. Oh that’s right – we can just print more money, it’s fine then.
At least, not yet. Maybe. We’ll see.
In another case of “will they/won’t they”, we’re watching Capitol Hill to see whether or not the homebuyer credit – you remember that, don’t you? – will have the June 30th deadline extended. Under the original bill, a buyer had to be under contract by 11:59pm April 30 2010, and close by 11:59pm June 30 2010, in order to receive up to $8000 back in the form of a first-time buyer credit (or $6500 for an existing homeowner).
Because of the supposed impact it had on the real estate market, and because lenders are so jammed up trying to get these loans through before June 30th, an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 was introduced that would extend the deadline to close these loans to September 30 2010.
Note – The amendment has not been passed into law. Both the Senate and the House have passed it, but because they amended the amendment – don’t you love government? – they have to work on amending the amendments … or something like that. Nevertheless, if you weren’t under contract by April 30th none of this applies. But don’t fear – there are still good deals out there.
Honestly, I was kind of hoping we were done with this tax credit thing.