Josephine Godinez, PA

Tax Credit Closing Deadline Extended to Sept 30

July 2, 2010 by Josephine · Leave a Comment 

It’s taken a bit of time to get here, but congress finally approved an extension of the time frame in which a closing can take place and still qualify for the federal homebuyer tax credit.

Legislation that extends until Sept. 30, 2010 the closing deadline for claiming the home buyer tax credit — HR 5623, as associated with the Homebuyer Assistance and Improvement Act of 2010 — passed the Senate by unanimous voice vote Wednesday and was today signed into law by President Obama.

According to the article in Reuters, “Real estate agents said as many as 180,000 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 signed before April 30. Homebuyers with contracts signed by April 30 who failed to go to closing by the original June 30 deadline will now have until September 30 to complete their purchases.”

Having been directly or indirectly involved in over 100 short sale transactions since 2006, I can assure you that this extension was very much needed. Most lenders are overwhelmed with the sheer volume of these deals and are often unable to complete processing in a timely manner. The loss of these potential sales would have been a blow to the already tenuous housing and overall economic recovery. Let’s keep the positive momentum flowing and get this great nation back on its feet.

Happy 4th of July! Stay safe and enjoy spending time with family and friends.

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Josephine Godinez, PA