Extension Approved for Tax Credit Deadline

photo credit: SBeggsMiller

A build up of more than 180,000 homebuyers nation wide will have a chance to take advantage of the governments tax credit and close on their homes. The Senate has revised a bill to allow homebuyers, currently under contract, an extra three months to close their deals and claim the federal homebuyers tax credit.

Due to the tremendous backlog of loan applications lenders have had to tell prospective home buyers that their loans will not close by the deadline of June 30. Because of this, the National Association of Realtors are in support of the amendment and hope to help homebuyers close on the purchase of their homes.

The extension does not allow new contracts to be considered, but instead allows current contracts to close and take full advantage of the tax credit. NAR President Vicki Cox said in a statement, "Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs."

Backdating claims to show homebuyers were under contract by April 30, to take advantage of the tax credit, is a concern of government officials, and would expose the government to additional fraudulent claims.

Read the full article from Inman News

Posted on June 28, 2010 13:13:19 by Blog Author