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TAX CREDIT EXTENSION UPDATE!!!

The home buyer credit, extended and expanded over the last 3 years is set to expire today, wed june 30th with Congress still unable to approve the extension as part of HR 4213 (see previous update below). However, recently released data for May 2010 shows worrying trends of sharply declining sales of existing and new homes. Further, inventory data and foreclosure activity have not shown any signs of improvement. All this suggests the expiration of the home buyer credit may have more of an impact than people thought.

This has prompted House members to take more action with the stalling of the HR 4213 bill in Congress (due to other provisions in it). As such a new bill – H.R 5623 – has been introduced and approved by the House (409-5) to extend the $8000/$6500 home buyer credit. It now goes to the Senate, where Senate Majority Leader Harry Reid, D-Nev., has sponsored a similar measure. Here is a summary of the bill:

H.R. 5623 – Homebuyers Assistance and Improvement Act of 2010. Among other items, this bill would extend the homebuyer tax credit of up to $8,000 for the purchase of a principal residence before October 1, 2010. The current benefits apply to cover buyers who enter into contracts before April 30 and close by June 30. This bill extends the closing date to September 30, 2010.

The bill would provide any home buyer who entered into a contract on a home by April 30, 2010, but has been unable to go to closing within the required 60 days, an additional 90 days to close and qualify for the credit. This provision is estimated to cost $140 million

The approval of this bill would be great news for many home buyers who signed a purchase agreement/contract prior to April 30th but are having difficulty closing before June 30th. One thing to clarify – this bill does not extend the deadline for home buyers to sign a contract for a home and hence qualify for the tax credit (still April 30th); rather it extends the deadline for closing the transaction, from June 30 to Sept.30.

The National Association of Realtors estimates that this new extension will help about 180,000 homebuyers who already signed purchase agreements and were likely to miss the Wednesday deadline.

I will continue to monitor the status of this bill′s approval through Congress and will update with new information. I encourage you to subscribe (free) via Email or RSS to get the latest updates.

EMAIL YOUR STATE SENATOR AND IMPLORE HIM/HER TO PASS THE MOST RECENT BILL TO EXTEND THE TAX CREDIT THRU SEPT 30TH, 2010. LASTLY, THIS SHOULD AID OUR ECONOMY BY HAVING THOSE WHO WILL POTENTIALLY SPEND MORE MONEY ON THEIR NEW PURCHASE FOR FURNITURE, APPLIANCES, PAINT, CONSTRUCTION, ETC.

ATTENTION: THE HOMEBUYER TAX CREDIT OF $8000 (NEW BUYER) OR $6500 (PREVIOUS OWNER) HAS BEEN EXTENDED AND MUST CLOSE BY SEPT 30, 2010 TO BE ELIGIBLE; AS LONG AS YOU HAD BEEN IN CONTRACT BY APRIL 30TH 2010

28 comments to TAX CREDIT EXTENSION UPDATE!!!

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