Many homebuyers who went under contract prior to the April 30th tax credit deadline, but still haven’t managed to close, may be starting to sweat as the June 30th closing deadline approaches. In fact, according to the National Association of Realtors (NAR), as many as 180,000 homebuyers who signed contracts in time will not be able to make the June 30 closing deadline. Approximately 75,000 of those are buyers of distressed properties.
It looks like they might get a little extra help from Uncle Sam.
After strong urging from NAR, the Senate approved adding the amendment to a proposed jobs bill on Wednesday to extend the closing deadline on the tax credit of up to $8,000 for home buyers. Under the measure, buyers would have until Sept. 30 to close on sales that went under contract by April 30.
The extra time would, of course, only apply to buyers who met the original April 30th sales contract deadline…if the bill passes.
“All [the measure] does is take the existing law and scratch out June 30 and put in Sept. 30,” says Lucien Salvant, a spokesman for NAR.
The measure was introduced by Nevada Democrat Harry Reid, Georgia Republican Johnny Isakson, and Connecticut Democrat Chris Dodd. The extension measure is part of a wide-ranging bill of tax policy extensions and federal program renewals.
The Senate will likely vote on the larger measure later this week or next week, and then it heads to the House. Stay tuned…I'll be following developments on the status of the bill.
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