Tax Credit Extension...Kinda

  Here is some "breaking" news regarding the tax credit extension for buyers purchasing homes. The original deadline was June 30th but it seems that the Go...

Tax Credit Extension...Kinda Close
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Tax Credit Extension...Kinda

Posted by Gary Ashton: RE/MAX ADMIN on Thursday, July 1st, 2010 at 10:16am.

 

Here is some "breaking" news regarding the tax credit extension for buyers purchasing homes. The original deadline was June 30th but it seems that the Government has realized that sometimes things do not always go as smoothly as planned in a real estate contract! One example is the flooding that occurred in Nashville. This was an example were a buyer may have been well within the time frame to get the credit but, because of the flood, the deal fell through and they had to identify another property...that could have been very hard to do to keep within the closing date deadline. The extension is going to help those people and people in similar circumstances.

People buying homes that are short sales will also love this extension. Buying a home involved in short sale typically takes 2-6 months longer than a traditional sale. Deadline extensions are very common and so people could have missed on on the tax credit quite easily.

Here is a press release that covers the topic quite well:

WASHINGTON, June 30 (Reuters) - The U.S. Congress on Wednesday approved a bill extending the closing deadline for homebuyers trying to take advantage of a popular tax credit.

Homebuyers with contracts signed by April 30 who failed to go to closing by the June 30 deadline will now have until September 30 to complete their purchases. The House of Representatives on Tuesday approved the bill and it now goes to President Barack Obama for his signature.

The $8,000 tax credit for first time homebuyers and $6,500 credit for others purchasing a new primary residence was a highly popular temporary measure by the Obama administration to jump start home sales during the economic recession.

Real estate agents said thousands of homebuyers would miss the June 30 deadline because banks and settlement offices were struggling to deal with the volume of people rushing to close on their deals.

"In addition to helping thousands of families experience the American dream, this successful and popular program provides a much needed boost to Nevada's housing market and economy," Senate Majority Leader Harry Reid said in a statement. Reid, a Democrat, faces a tough re-election fight in Nevada, where the U.S. foreclosure crisis is most pronounced.

The jobless aid bill fell one vote short of the 60 needed to overcome procedural hurdles in the 100-member Senate. Republicans objected to the $34 billion cost of the bill.

The Democratic-backed bill would have extended the federal jobless aid program through November. Senate Republican Leader Mitch McConnell offered a two month extension that was paid for by using unspent money from last year's economic stimulus program and Democrats objected.

Reid said he would try again to pass the jobless aid bill after the Senate returns from the July 4 holiday recess. (Reporting by Donna Smith; editing by Anthony Boadle)

Source: Reuters

 

Gary Ashton

The Ashton Real Estate Group of RE/MAX Advantage

The #1 Real Estate Team in Tennessee and #4 RE/MAX team in the world!

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