Home Buyer Tax Credit Deadline Extension to September 30th - by RJ Baxter
The government is proposing a Federal Home Buyer Tax Credit Deadline Extension to September 30th, 2010 according to rumors that are swirling this morning.
The extension would allow those who are already under contract to close by September 30th in order to obtain the credit. However, it is likely the extension will not allow home buyers to make new offers on homes. The Home Buyer Tax Credit Deadline Extension would only accommodate those who are already under contract and beginning to worry about meeting the current June 30th deadline.
The proposal was introduced by Sen. Harry Reid of Nevada, Sen. Johnny Isaakson of Georgia, and Sen. Chris Dodd of Connecticut. The Senators argue that the Home Buyer Tax Credit Deadline Extensionis mainly to accommodate short sales which traditionally take longer to close than "normal" transactions. It is not surprising that Reid is one of the backers of the extension, with short sales accounting for over 25% of home sales in Nevada currently.
"The first time homebuyer tax credit was very popular and successful in Nevada," Reid said. "In addition to making it easier for thousands of Nevadans to purchase their first home, it helped reduce the sitting inventory of homes. By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home."
The proposed Home Buyer Tax Credit Deadline Extension will be voted on soon and would be welcome for home buyers who are worried about meeting the current June 30th deadline, short sale or not.
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