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Homebuyer Tax Credit Closing Date Shot Down, for Now

Date:June 25, 2010 | Author:Alison Paoli | Category:8000 tax credit

The Senate failed to pass a bill yesterday that would’ve extended the closing deadline for the homebuyer tax credit. The extension, which was part of a larger stimulus package (“American Jobs and Closing Tax Loopholes Act”), would’ve extended the deadline by three months, from June 30, 2010 to September 30, 2010.

This defeat means thousands of buyers might not be able to close on their homes in time to take advantage of the tax credit. There is an outside possibility the extension could still go through. Read more in Zillow’s Mortgages Unzipped blog.

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Responses (12)

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AV Homes 1:47 PM - Jun 26,2010

That’s really a shame. There’s a lot of escrows that drag on longer than anybody expects and because of that fact, they are going to miss out.
Elli Davis 12:17 PM - Jun 27,2010

Maybe that’s bad news for many people, but there is inner logic behind this decision. Tax cheaters could abuse this extension – and it’s also very expensive for the country.
Marta 10:35 AM - Jun 28,2010

The uncertainty of it all adds so much more pressure and stress on the buyers. I hope everything works out here.
gabriel 12:22 PM - Jun 28,2010

It is important to write the congress to extend the deadline for the home buyers tax credit closing extension.
Please take a look at this link where it shows Who voted against the extension.

http://www.opencongress.org/vote/2010/s/200
Dale 1:59 PM - Jun 28,2010

Elli, the tax cheater issue could be easily avoided by simply examining when escrow was opened. In order to be eligible for the credit, an eligible buyer had to have a home under contract by April 30. Normally escrow would be opened within a few days of the contract being executed. So if the concern is that people are going to cheat by back-dating contracts, all the IRS would have to do is get verification from the title company to see when escrow was opened. If escrow was opened 2 months after the contract was executed, then obviously something is afoul.

The idea behind extending the closing date is simply to allow more time to close for those who have already qualified. There is no new money being spent here. Banks and title companies are extremely backlogged, and there is no way that everyone who has already qualified will be able to meet the June 30 closing deadline. Furthermore, this is due to no fault of their own. They are at the mercy of the lenders and title companies. Some estimates have stated that 180,000 people will lose the credit if the closing deadline is not extended.

Common sense clearly warrants that the closing date be extended. Unfortunately, common sense seems to be in short supply these days.
Joe Sorrentino- Assoc. Real Estate Broker 6:56 PM - Jun 28,2010

Unless a buyer has specifically written into their purchase contract that the closing date will be NO LATER THAN JUNE 30,2010
Joe Sorrentino- Assoc. Real Estate Broker 6:59 PM - Jun 28,2010

Unless a buyer has specifically written into their purchase contract that the closing date will be NO LATER THAN JUNE 30,2010, the deal cannot fall apart or, unless the purchaser’s mortgage commitment expires by June 30th. There will however be a lot very disappointed people in America.
Nick 10:00 PM - Jun 28,2010

Here comes all the new taxes, come november..
homes sale san diego 12:18 AM - Jun 29,2010

Not to say that $8000 isn’t a lot of money. But I sure hope there aren’t a lot of people who are making the decision to buy or not to buy based upon the tax credit. If so we may be looking at more foreclosures from people who shouldn’t be buying in the first place.
Travis 9:37 PM - Aug 26,2010

And I wonder how yesterday’s report of 27% drop in home sales will affect their thinking. The Dems have to do something fast to have any chance of holding the House in November. May already be too late, but the home buying tax credit extension would be a logical thing to act on fast.

- Travis
shiquita 2:41 PM - Sep 13,2010

FORcloure home: I have been trying to but this home for the last the last part of March. since then i have had the appraisal done, the home inspection, andthen the hit me with that the papers was not filed correctly.(May after the deadline) they give us some time to resolve this. three more months have went by as of today and my realitor nor listing agent has not heard any thing. Now they still have my earnest money. and now it looks like i’m going to miss out on the tax credit for the second and last time SAD Situatuion. the only reason I have stuck in there was because money and time invested. as well as I had the contract since March and praying to get the tax credit in which would have been a great deal of help. This type of SITUATION is UNFAIR for those ppl whom have no control over this matter. It should be a loop hole to help ppl who want to own a home get this tax credit do to this type of situations…… GOD BLESS