The Congress has passed H.R. 5623, the Homebuyer Assistance and Improvement Act, which extends the tax credit closing deadline until September 30th. There will also be no gap between June 30th and the date the President signs the bill into law. The extension only applies to transactions in which the purchase contract was signed by April 30th. Again, this applies only to contracts executed on or before April 30.
This will go to the President for his signature before it becomes law.
I know there are few of these deals floating around out there (new construction?) which is great news for these buyers.
What this new Act does is extends the time that a home buyer must close to October 1, 2010. The old date was June 30, 2010. It was estimated that over 180,000 home buyers were going to miss out on the tax credit because of lack of time for underwriters and loan officers to get needed information and to get the closing documents to the closing parties or attorneys.
In the Senate's version of this bill, there is also a measure to extend unemployment insurance to those out of work.
So, will this fix the economy? Many do not think so. I have been reading comments online from people who think that the government should stay out of it and let the economy fix itself. However, this is not an expansion of the tax credit, simply an extension.
The home buyer's that this applies to are those that did purchase, in good faith, a home before the April 30th deadline, and through no fault of their own, would have missed the required June 30th deadline for the tax credit. Most delays are coming from swamped loan underwriters and home builders trying to get new home finished in time.
If you have any questions about this extension, please feel free to contact me or visit www.MarketWatch.com. They have a great section on this as well as other items affecting the economy.
Have a great day!
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