President Barack Obama signed into law a 90-day extension for the closing date in order for more home buyers to receive their $8,000 or $6,5000 Tax Credits. The new closing date for sales to be settled by is September 30, 2010.
After a lot of speculation and an amendment to the unemployment benefit bill last week which failed to pass the house, both the senate and congress pushed the 90-day extension through this week to allow buyers who already had signed purchase agreements to close and remain eligible to file for their tax credits.
While this is ultimately costing tax payers more money, I have to say it’s a good thing for a lot of buyers–including a couple of my personal first time home buyer clients right here in mn.
Short Sales, New Construction, and Foreclosures can often take several months to be closed even after both sides have agreed to the terms of the sale. Add in a deadline which has as much as $8,000 hinging on it, and you’re sure to get a rush of activity that causes backups, slowdowns, and overloads the real estate sale system as we know it.
As far as a new tax credit or home buyer incentive, there is still no word from the government about any programs or grants being unveiled, despite the still declining housing market nationwide. However, these statistics don’t always tell the whole story.
If you’re looking to buy a home you should consult with your local real estate agent and loan officer to see what things are like in your area. Real Estate is very local, similar to weather reports in a way. You wouldn’t care what the weather was like in Los Angeles if you lived in Boston, right? Just because Florida and Nevada are still struggling housing markets doesn’t mean Minnesota or Wisconsin markets are hurting.
If you were in a position to miss out on the tax credit because of your closing date you now have an additional 3 months to make it happen–so go get to work!
