Just a week ago, the Senate made a big decision, voting to extend the
homebuyer tax credit closing date to September 30. What this means is
that all those homebuyers who purchased a home under the program for the
$8,000 homebuyer tax credit will have a better chance to meet the
qualifications within the closing date, gaining the tax credit as
Under the original regulations, homebuyers were required to complete
the purchase of their new home with a closing date of June 30.
Obviously, with June 30 just a few days off, thousands of homeowners
would have not met the tax credit deadline. Closing on a property can be
frustratingly long, due to the complexity of the process and the many
people involved. Applying for the tax credit added some complication to
an already-long process. Some realtors estimated that one third of all
the applicants for the tax creditâ€”around 180,000 homebuyersâ€”would have
failed to close on their home by June 30, and thus would not gain the
homebuyer tax credit.
The decision to extend the tax credit was an obvious one. Why should
government go to all the trouble of providing a tax credit only to have
thousands of applicants fall through because of a tight closing date?
The havoc it would have dealt to potential homebuyers, realtors, and
other segments of the market would have been severe. Now, with the tax
credit extended, homebuyers can rest assured.
In order to successfully complete the tax credit process with the
extended closing date, the homebuyer needs to have signed the purchase
agreement on or before April 30. Â This is not an extension of the credit
itself but an extension of the deadline. Â The tax credit extension was
just what the homebuyer tax credit program needed to guarantee its
success and finish well.
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