**** The below information was posted prior to June 30th. Since this time, the Senate and House have voted on Extending the Home Buyer Tax Credit until September 30th. **** Last step is for the President to sign off and make this official. ***
In case you have not heard, the Senate has approved the First Time Home Buyer (and Move Up) Tax Credit deadline. We still have a few more steps before this will become "official" but they are one step closer to making it happen.
Recently, the Senate has approved this extension to ensure that the First Time Home Buyers and Move-Up Buyers that are under contract will close/fund their loan and receive their tax credit. Based on reports, it showed that over 180,000 home buyers would miss out on their extension if the tax credit deadline is not extended.
Now, this does not mean that any 'new' contracts would be honored. This extension would only benefit those home buyers that had a contract signed by April 30th, 2010 and will not be able to close on their loan until after June 30th 2010, which was the original tax credit deadline date.
I was shocked at the number of loans that could not close within that original 60 day window, but was not as shocked after I heard how many of these purchases were Short Sales or Bank Owned property. Those transactions do tend to take much longer, especially when the Lender and/or Realtor are not familiar with the process.
So, if you have been under contract since April 30th, there may still be time to take advantage of the tax credit, up to $8000.
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I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice. If you are available to talk, I am available to listen. Give me a call or visit my website for more details.
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I hope you are not buring the midnight oil but it is good for everyone that this deadline was extended.
I dont have anyone thats outstanding. All buyers that came through our doors is closed, Teral. I hope you had the same success. It is good that the extension was provided to those that were less fortunate to close by June 30th.
That is great news for those who were under contract! Thanks for passing that along John!
Did the Senate and House mesh their bills to official extend the tax credit?
All the best!
Ryan Smith from Temecula, CA
This is good news for everyone under contract prior to April 30th! I know there was some stress about this issue!
I've not heard that the bill has passed both House & Senate yet and then signed by Obama. Hopefully it gets done soon with the Flood insurance issue at the same time:)
John, I was wondering about those loans also but the foreclosures and short sales make sense.
** I have revised this post to reflect that the approval has come from Senate and still is not official, although its one step closer. ** I'll update the post again if/when the final bill is passed **
Now that is some good news for a change...
Helping you help others live their American dream...
I heard over a week ago, I believe last Tuesday, that it became official. Where is the mixed information coming from.
But also, 180,000 home buyers are being effected? That's a hard number to swallow when stats showed, nationwide, that only 10% of transactions were foreclosures and short sales (6% in Texas). 60 days should have been plenty of time for "regular" loans to go through.
From what I understand its as John puts it in his opening statement "we still have a few more steps before this will become official". The Senate approved their part, the House needs to do the same and the Pres. sign. This is all attached to some other bill that is being worked on as well so if that bill gets kicked around some it will delay the official approval date but I think pretty much everyone assumes that this will be a done deal.
Brian.
Donna - It is not official just yet. But hopefully it will be soon for those homebuyers with signed contracts since April 30th. I completely agree with you that I thought 180K is a LOT still looking to close be June 30th. It would be ridiculous if a typical loan can not close within 60 days. I have not seen the official stats of the 180K to know what percentage is Foreclosure, short sale, or a typical purchase.
Brian - That is correct. Still needs to go through those other channels before the September date is official.
***Update*** The extension is dead! It was attached to the failed "Jobs" bill. Shot down in the Senate because of the added 30 billion to the deficit (not related to the tax credit extension).
John ~ yeah! the extension is now dead. Let's see if it gets revived?!
Well... that is that... I dont have anyone left to close out, so it wont hurt me directly. Too bad for those homeowners who were unable to get the deal done in time.
Oops - time to update again! It was separated from the unemployment benefit extension and - voila - it passed. I'm sure you already know by now, I'm just sayin'!