Wednesday, June 30, 2010

Federal Home Buyer Tax Credit Extension - HR 5623 can the Senate act quickly enough?

Due to the challenges and extended time-frames associated with buying short sale and foreclosure properties, many home buyers who entered into contract on or before April 30th to take advantage of the federal home buyer tax credit are concerned escrow may not close before the June 30th deadline. I can tell you that I have several short sale listings with offers from hopeful first time buyers wanting that tax credit that have not been approved just yet...

As a result, the US House of Representatives just approved HR 5623 yesterday that will extend the deadline to close until September 30th, 2010. Under this legislation, buyers still have to be in contract as of April 30th, 2010 - so if you are a buyer that was not already in contract by that date, this amendment does not affect you. Per the federal tax credit guidelines, qualified first time home buyers could qualify for up to $8,000 and repeat purchasers up to $6,500. The bill will now go back to the Senate for approval, before reaching President Obama's desk for final approval...keep your eyes open for the latest! This is NOT a done deal!

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