First time,  in Macomb County, MI

Will the tax credit for first time home buyers be extended?

Asked by First time, Macomb County, MI Mon Mar 29, 2010

I can not buy until May 8 when my bankruptcy discharge reaches 2years. Which is after the April deadline for the tax credit. Is there anyway to still get this or will it be extended ?

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23
Mike Abbott’s answer
As most everyone mentioned the credit will most likely not be extended however when one door closes another opens. By the time you are able to purchase the new HAFA (gov. short sale guidelines) program would of been in effect and a lot of new discounted inventory will be on the market, hopefully without as many stall and twist tactics used by lenders, servicers recently. I see a bright spot for those able to purchase and an inventory unlike any we have ever seen. That and more (shadow inventory) bank owned properties will put you in the drivers seat. These distressed properties prices should make up for the $8,000 credit you would of gotten. Do get pre-approved and save everyone a lot of paperwork and you a lot of hassle. Good luck Missy!
1 vote Thank Flag Link Fri Apr 2, 2010
BEST ANSWER
Missy,
I spoke to my superiors and this is something that could be done. By this I mean a pre-approval letter stating that you are pre-approved assuming that you meet certain conditions. The main condition would be that you would have to close after May 8. If you have any other questions that I can help you with feel free to contact me via email.
Brian McElya
bmcelya@fpmcc.com
1 vote Thank Flag Link Mon Mar 29, 2010
You should find yourself a good Realtor who knows some great lenders, you can make this happen, I certainly wouldn't rely on an extension of the Tax Credit! If you can get the right people working for you, you may be able to eliminate the need for an extension!
1 vote Thank Flag Link Fri Apr 2, 2010
Hi Missy,

I really doubt that it will. There would have been talks about it already. If you are in the market to buy secure a contract before the end of April to have a chance and try to close before June 30th. Best of Luck.
1 vote Thank Flag Link Fri Apr 2, 2010
No, in my opinion, the tax credit will not be extended anymore.
But you can get creative with you lender and see what you can do in order to get into contract before April 30th.
1 vote Thank Flag Link Fri Apr 2, 2010
You must have an executed contract signed by 4.30.10

You receive annual tax credits of owning any property.

Are you a Veteran? IF yes here is a direct link for extension :
http://activerain.com/blogsview/1520214/dallas-homes-for-sal…

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Fri Apr 2, 2010
Missy,

Landcontract also qualifies for this tax credit, so if you have sellers who can do land contract then you can be in good shape.

Ron
1 vote Thank Flag Link Fri Apr 2, 2010
You should talk with a few different lenders. I have had clients that have gotten loans before the two years. You are almost there
1 vote Thank Flag Link Fri Apr 2, 2010
Hi Missy,
Go ahead and get a purchase agreement signed on the home you want to buy before April 30,2010. Get your lender to issue a pre-approval letter with the condition that your closing date must occur after May 8 when your bankruptcy discharge will be 2 years old. This will give you plenty of time to have your closing on the new home by the deadline for getting the tax credit by June 30, 2010.
We have been given no reason to think the tax credit will be extended; but, you can make the timeline if you do as suggested above.
1 vote Thank Flag Link Fri Apr 2, 2010
Missy,

Sure everyone provided the inputs and chances are it may not get extended. If you see the chart at http://www.chartoftheday.com/20100326.htm?A the market is back to the right place now and changes are we are at a good time to purchase houses. We have two houses in sterling heights and one is at:
http://www.thebestmihomes.com/43924Donley.html
This is under full remodellling and should be up in few days..
http://www.thebestmihomes.com/38756Covington.html

Let us know how we can help.
Ron
http://www.youtube.com/tbmhomes
1 vote Thank Flag Link Mon Mar 29, 2010
Missy - Chances are this will not be extended. However as Brian stated below in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify. So this will still leave you time to close on the house just make sure you are under contract to purchase one by April 30th 2010. Here is a link to helpful information regarding this topic. Good Luck

http://www.federalhousingtaxcredit.com/faq1.php

Jason Stevens, GRI, ABR
Kevin Flynn Realty, Inc.
email: jasonstevens@embarqmail.com
1 vote Thank Flag Link Mon Mar 29, 2010
The requirements for this program is that you would have to have an accepted purchase agreement by April 30th. You have to close on the loan before June. There are ways for this loan to be done and for you to still get the benefit of the tax break. Not sure if you are already working with a lender but this can be done.
1 vote Thank Flag Link Mon Mar 29, 2010
I tend to agree with most everyone else's answer--I have no reason to believe the tax credit will be extended beyond the April 30th deadline. The credit doesn't seem to be special anymore so maybe it is time to take it away for awhile and maybe bring it back in October.

I also think it's a good idea to get a house under contractbefore then--just be up front with your realtor and lender about your situation.
0 votes Thank Flag Link Fri Apr 2, 2010
Only the contract needs to be signed by April 30th. The closing can occur as late as June 30th. However, this may be a tight time frame to work with as it can take more than 60 days to close depending on the your local market. Given the recent changes in RESPA regarding disclosure notices and other loan underwriting requirements, it is virtually impossible to close quickly in any locality if there is financing from a banking institution involved in the transaction.
0 votes Thank Flag Link Fri Apr 2, 2010
I doubt that it will be extended at this point. My guess is that the politicians will let it expire this time, and then bring it back in October just in time to look good for the 2010 elections!
0 votes Thank Flag Link Fri Apr 2, 2010
Assume no, I've heard nothing to suggest it will, and also, the deadlines are approaching fast, FHA financing in particular is taking longer so don't think you can turn on a dime.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Apr 2, 2010
I had an opportunity to meet with some high ranking officals in Congress.... This question came up and the answer was without hesitation a resounding NO. They have extended it once already and modified it a couple of times. i think they are going to let it go by the way side and try other measures to help homeowners facing foreclosure at this point.
0 votes Thank Flag Link Fri Apr 2, 2010
Hi Missy, Jeanne Feenick from New Jersey chiming in here - assume "no". Just last week I attended a luncheon that included comments from the president of the NJ Realtor Assoc who had recently returned from Washington - this very question was raised, and she emphatically said "no". We have nothing that suggests it will be extended.

Having said that, I guess at this point I would believe anything coming out of Washington. But I will advise you that based on everything we know now, "no".

What is likely is that rates will rise, and with that your buying power will decline.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Mar 29, 2010
House sales are not good with it still in effect. That gives no real reason for an extension. Expect it to go away and not return.
0 votes Thank Flag Link Mon Mar 29, 2010
No the credit will not be extended. You need to be in contract by April 3oth and close by June 30th.
Please contact me via email if you have any further questions.
Kim Smith
K.smith@remax.net
0 votes Thank Flag Link Mon Mar 29, 2010
You could still potentially purchase if you discose that you won't be able to provide a pre-qualification letter until after your May 8th release. I suggest speaking to a lender to see where you will qualify post release. Then you can still search and potentially go under contract on a home with your lending process starting after your release, May 8th. It may be a long shot but one worth pursuing if you are looking to purchase anyhow! I don't see the tax credit being extended - so if the $8k bonus is what is motivating you then I suggest to seek out all options! Best of luck!
0 votes Thank Flag Link Mon Mar 29, 2010
We don't know for sure at this point, but since the goverment just spent $10000000000000000000000000000000000 on health care reform, I doubt it will be extended.

Brian has a point, so it is worth your further investigation.

Good luck.
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Mon Mar 29, 2010
I think it is unlikely that Congress will extend the credit. We have seen less of an impact with the recent one than we did with the one due to expire at the end of 2009. There are signs that the economy is coming around and the biggest hurdle to recovery is unemployment. I expect Congress to focus on creating job opportunities and less on spending stimulus.

That being said, there are a trememdous amount of reasons to buy regardless of the tax credit. Mortgage rates are still at close to record low levels and will only go up from here. Depending on the market, home prices are stabilizing, but there is a large supply to work through so prices are still low.

Extending the credit is a Congressional devision, so you can always approach your Senator or Representative's offices and ask.....they do represent you!
0 votes Thank Flag Link Mon Mar 29, 2010
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