I reiterate the previous answers in that we haven't heard anything about an extension. Your best bet is to buy right now and go for a regular sale (seller to buyer). A short sale is out of the question and foreclosures can also be a lengthy process, since the purchase contract the banks use have basically no deadlines on responding to an offer or a closing date. If you have the money for down payment, go for it. I don't now if you're aware that buyers can ask sellers to help with closing costs, usually about 3% of sale price. This went away during the "flush" years, but it's back again in a big way. Even if it's not the full 3% you can at least get some money towards closing. Good hunting!