photo credit: Collin Anderson
Good news for all the buyers who are patiently waiting for banks to make decision on pending short sales!
Yesterday, I got an email, or three, letting me know that the Senate had passed a tax credit extension for those who have accepted offers on homes, that will not close by the original deadline of June 30, 2010.
These mainstream articles that will give you a bit of background and more specifics on the proposed extension:
- Associate Press – Senate approves home tax credit extension
- Reuters – Senate votes to extend US home tax credit deadline
And, as Jay Thompson at PhxREGuy.com points out on his post, Senate Amendment to Extend Home Buyer Tax Credit Deadline, the bill still needs to be reconciled with the previously passed House bill, and signed by the President, before it goes into effect.
The National Association of Realtors (NAR) has been focused on this issue, as you can see in the chronology: First-Time Home Buyer Tax Credit: Latest News. The comment NAR president, Vicki Cox Golder from Tucson, made in her letter to Congress yesterday is spot on.
Extension of the closing date is a pro-consumer relief provision. It assures the fair treatment of prospective purchasers who have followed the rules and done their part to assure that the sale goes through. Congress must assure that those who have met the eligibility requirements for the credit and done all within their power to satisfy the timing requirements will not have to forfeit the credit because of events and challenges outside their control.
I imagine that the bill will be reconciled and signed by the President, but until that happens, it’s not a done deal. And then, it will be up to the banks holding the strings on the estimated 75,000 to 180,000 contracts that are currently under their review to step up and work towards completing these transactions in the next 3 months.
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