By Sara Huebener
This just out....
The deadline for first time homebuyers to CLOSE on their properties in order to receive the $8000 tax credit has been extended to September 30. This does not mean that the tax credit is available to buyers who have not yet bought a home.
Previously, the tax credit deadline was April 30, 2010 to have purchcase agreements written and finalized, and June 30, 2010 to close. But the backlog of closings in the month of June would disqualify many otherwise qualified buyers from receiving the tax credit, through no fault of their own. The title and mortgage companies were literally swamped and maxed out with closings.
The extension of the closing date for the tax credit will allow many people who have already met the April 30, 2010 deadline to now close and receive the tax credit. Many buyers had indicated they would back out of their purchase agreements if the extension did not pass, which would put a flood of houses back onto the market.
We personally have some buyers who wanted to buy their first homes and are renting, and had planned to use their tax credit dollars to buy out the remainder of their lease and get into a home. If the tax credit was not extended and the lender could not get them closed by June 30, they would need to back out based on the lack of funds to pay for two residences at the same time. This extension will allow them to still buy a home and get out of their lease.
Comments