Homebuyer tax credit extended;
closing date deadline is now Sept. 30
Thursday, July 01, 2010
If you went to bed last night freaking out that you wouldn't be able to claim the first-time homebuyer credit, here's some welcome wake-up news.
It's official. You now have three more months to finalize your home purchase.
With the tax credit's settlement deadline ticking down, the Senate late Wednesday approved by unanimous consent a measure identical to
the one passed Tuesday by the House.
That means the extended-yet-again homebuyer tax credit bill is on its way to Obama so his signature can make it law.
Remember, this latest piece of legislation is only for folks who had a contract in place by April 30, but couldn't finalize the purchase by the previous June 30 due date.
Now first-time buyers, who can claim a credit of up to $8,000, as well as eligible repeat buyers, whose credit maximum is $6,500, have
until Sept. 30 to close on their residences.
The breakthrough came when Senate Democrats decided to pull the homebuyer tax provision out of the bill that also would have authorized additional unemployment benefits for around 1.7 million folks looking for work. Majority Leader Harry Reid (D-Nev.) was one vote shy of the 60 needed to move the combination bill forward.
As has been the case for weeks, most of the Senate Republicans, along with Democratic holdout Ben Nelson of Nebraska, objected to the cost of the continued unemployment benefits. Maine's GOP Sens. Susan Collins and Olympia Snowe were the only members of their party to vote for extending jobless assistance.
But to no one's surprise, the full Senate had no qualms when it came to the housing industry bill.
Who's affected: As the debate wore on, the The National Association of Realtors broke down the numbers of buyers who might miss out on the credit by state:
| Alabama, 2,590 | Kentucky, 2,540 | North Dakota, 460 |
| Alaska, 830 | Louisiana,1,800 | Ohio, 8,510 |
| Arizona, 5,440 | Maine, 840 | Oklahoma, 2,760 |
| Arkansas, 2,090 | Maryland, 2,630 | Oregon, 2,090 |
| California, 17,700 | Massachusetts, 3,930 | Pennsylvania, 5,830 |
| Colorado, 3,390 | Michigan, 6,470 | Rhode Island, 500 |
| Connecticut, 1,770 | Minnesota, 3,760 | South Carolina, 2,460 |
| Delaware, 400 | Mississippi, 1,530 | South Dakota, 500 |
| D.C., 300 | Missouri, 3,600 | Tennessee, 3,910 |
| Florida, 14,830 | Montana, 760 | Texas, 15,340 |
| Georgia, 6,270 | Nebraska, 1,110 | Utah, 1,130 |
| Hawaii, 710 | Nevada, 3,800 | Vermont, 400 |
| Idaho, 1,270 | New Hampshire, 690 | Virginia, 3,890 |
| Illinois, 7,030 | New Jersey, 4,300 | Washington, 3,190 |
| Indiana, 3,560 | New Mexico, 1,160 | West Virginia, 940 |
| Iowa, 2, 030 | New York, 9,190 | Wisconsin, 2,690 |
| Kansas, 1,840 | North Carolina, 4,890 | Wyoming, 390 |
In most instances, says real estate industry insiders, the problem has been because lenders and
appraisers, in the last-minute tax credit rush, weren't able to get everyone's paperwork in order in time. They promise the three months will allow them to get through the backlog. I'll believe it when Oct. 1 arrives without yet another extension.
Related posts:
- Senate leaders also propose extending
the first-time homebuyer tax credit - The homebuyer credit: It's baaacckkk!
- First-time homebuyer tax credit extension is no sure thing
- Senate tax extender changes: homebuyer credit extension,
easing S Corp taxes? - Tax extenders moving (maybe) in the Senate
- Tax policy and the American homeownership dream
- Putting the homebuyer credit to rest
- 'Successful, costly' first-time-plus homebuyer credit ending
- The federal homebuyer credit's 'exit strategy problem'
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