Congress Approves Extension Of Homebuyer Tax Credit

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Since I have 2 deals that were counting on the homebuyer tax credit I have been monitoring this story pretty closely the last couple of days. Like many deals, the contracts were signed before the April 30 deadline and all we had to do was close by today. However, with short sales always taking too long and lenders backed up many of these deals (the National Association of Realtors estimated 180,000 but they have a
vested interest in making that number as large as possible) just couldn’t close in time. So congress produced legislation to extend the closing deadline (you still have to have been under contract by April 30) until September 30. This legislation easily passed in the House but in the Senate it got tied to a very controversial unemployment bill that weighed it down. With today being the original deadline it looked touch and go for a while. However, I just saw an AP report that indicates that the tax credit extension has just passed and is being sent to Obama for signature. Apparently, they had to detach the tax credit extension from the unemployment bill to get it passed.

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