The National Association of Realtors said that over 180,000 people would lose their Tax Credit if the extension didn't come through, now we have confirmation that the House of Representatives has extended this closing date to September 30th.
According to the National Association of Realtors what tipped the balance was the people who followed the rules and were still going to be caught without the Home Buyer Tax Credit due to the June 30th closing date. These transactions included some 75,000 short sales, or homes being purchased for less than the existing debt on them.
Dust off those April contracts that could not close by the June 30th deadline! All that remains for the Bill to extend the deadline for closing to September 30th, is one signature!
Many mortgage lenders have been experiencing hard times closing deals that suddenly appeared in April, and many Mortgage Brokers know "some deals just won't close before June 30th."
There is talk of Harry Reid possibly having a proposal which will allow those who have already signed sales contracts, to close and fund by September 30th as an amendment to a Bill already in Congress that would extend jobless benefits for the unemployed through the end of November.
The National Association of Realtors has been pushing very hard for an extension out of an awareness of the difficulty Mortgage Brokers are having with the current deadline of June 30th. Since the entire process of getting a Mortgage now takes a bit longer than it used to, Mortgage and Real Estate Professionals view an extension of the Tax Credit Program as essential.
First-time buyers are eligible for a tax credit of up to $8,000. Current Homeowners who bought and moved into another home can qualify for a credit of up to $6,500.