I wish I had a crystal ball to find out.
I know that there have been a couple of bills proposed to both extend and change the tax credit.
A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced this month by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.
A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers was introduced last month by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.
â€¢Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.
This info is from a USA today article from June 23rd,2009
I certainly hope it does get extended. I know the rush is on to get a home and close before the deadline.
Great question,regarding the shortsale process.Yes it is not getting down to the wire. With loans taking 40 days or more to close the process must be timed right if you are planning on recieving the Tax incentive.
I would recommend only looking at short sales that are lender approved,Bank-owned or non-distressed sales.
The likelyhood of an extension is there ( as lawmakers are introducing bills to do this) but do not expect an answer much before the Dec 1st dealine.
My strategy to my buyers needing to take advantage of the 8K credit is to put the appropriate out clauses in any short sale offer and they may need to switch their focus if time gets short to non-short sale properties.
Hope that helps.
Keller Williams Realty
Bette Butz Realty, Inc.
I highly suggest that you retain a Buyer's Agent to assist you with your purchase.
Exclusive Buyer Agent in the Greater Boston area for the last 15 years
If you need help and are not working with another agent please give me a call.
Short sales are not "short" as you pointed out. Time is running out on the Tax Credit. Do not count on it to be extended you may miss out and get out there and find a Bank Owned property that can be closed within 45-60 days. That is the short answer! Let me know if I can help!
Realtor**Moving You in the Right Direction
Our recommendation, for current home buyers, is to take advantage of the opportunity as it exists today..... It could be a major mistake to plan on this government program or any other government program to be extended beyond its defined term of existance.
"Strike while the iron is hot,"
My opinion is, don't count on the $8,000 dollar incentive to be extended. Find a home and close by November 30th.
My contact number and website is listed below for further assistance.
Coldwell Banker Tyre & Taylor Realty, Inc.
2765 South Bay Street
Eustis, Fl 32726
I certainly hope so! But on that same note, I don't think I would delay a purchase now based on the fact that "they may extend it". Yes there has been talk of an extension. There has also been talk of offering the credit to ALL HOMEBUYERS. And yes, there has beenTALK of increasing the tax credit to $15,000. Talk is just that. Talk! For a sure thing, act now, and also consider that the approval time required for short sales
may lead you to the end of the line with no tax credit.
First, the $8,000 tax credit was designed to increase purchasing activity in starter/lower-priced homes. And to support that end of the market. In many areas, that end of the market is now red-hot. There are still many depressed areas, and the market for more expensive homes is still soft. But in some areas--such as Northern Virginia--lower-priced starter homes are being snatched up for full price in just a few days. So, the question is: When Congress considers whether to extend the tax credit, will there be enough of a broad-based need to generate the votes required to pass the bill? Maybe, but . . .
Second, there's rapidly growing concern over the size of the U.S. budget deficit. With all the stimulus packages, the bail-out bills, initiatives such as health care reform, etc., it's becoming more and more difficult to pass legislation that adds to the budget deficit. So, if low-end housing isn't an urgent, pressing issue in the fall, I expect that Congress will be reluctant to extend the credit.
And finally there are plenty of houses for first-time buyers to buy. Why focus on short sales? In fact, of all the different ways to go (regular purchases, REOs, and short sales), short sales are the most tricky, difficult, unpredictable, and time-consuming. If I were in Congress, I wouldn't take that into account. I'd say: The buyers have had a whole year to buy. They can buy all sorts of properties. And even if they're interested in short sales, those usually take a few months. If a first-time buyer had wanted to buy, there was ample opportunity. Jumping in relatively late in the cycle and trying to close a deal on a short sale was a decision the buyer made. We gave them a chance.
Look: If you want to buy, then buy. Assume that the tax credit won't be extended.
Hope that helps.