Homebuyer Tax Credit Deadline May Be Extended
Luke Mullins
With the deadline to qualify for Uncle Sam's homebuyer tax credit quickly approaching, Congressional lawmakers are trying to provide additional time for consumers scrambling to close transactions.
Last week, three U.S. Senators offered an amendment to a tax extension bill that would push back the date by which homebuyers need to complete their transactions in order to remain eligible for the federal tax perk. Under the terms of the measure, the original
The extra time, however, would only apply to buyers who already have a sales contract. It would not open the door to additional buyers. "All [the measure] does is take the existing law and scratch out
The tax credit, which was extended and expanded in November, provides up to
On top of lower prices and cheap mortgage rates, the credit has helped stimulate buyer demand. Existing home sales increased 7 percent in March and 8 percent in April as the contract-signing deadline approached. But this increase in sales has, in some cases, overwhelmed the real estate industry's capacity, thereby lengthening the time is takes to complete a transaction, Salvant says. Meanwhile, many first-time buyers are purchasing distressed properties -- such as foreclosures or short sales -- which often take longer to complete. These delays could prevent as many as 180,000 home buyers who signed a contract by
"These are not buyers who just entered into the market," NAR President
Since the measure does not open the door to additional buyers,
The enactment of the measure isn't a done deal. Members of
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Real Estate - Homebuyer Tax Credit Deadline May Be Extended
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