Tax Credit Extension Delayed
News services yesterday erroneously reported the approval of an extension to the home buyer tax credit deadline to close already signed contracts.
Palm Coast, FL – June 18, 2010 – News services yesterday erroneously reported an extension to the home buyer tax credit deadline to close already signed contracts. What actually happened is that the Senate voted to attach an amendment to an existing bill. The bill also contains an amendment that will extend the expired National Flood Insurance Program (NFIP).
The larger bill contains two measures vital to the housing market. Its status is still ambiguous. Some news reports are saying this morning that the bill must first pass the Senate. Then the House votes on the bill. Other reports indicate that the Senate has passed the bill but the House has not yet done so.
Until Congress extends NFIP, no new or renewal flood policies can be issued. Without the flood insurance coverage provided by NFIP, thousands of residential and commercial transactions are on hold.
The current closing deadline for first-time buyer credits of $8,000 and move-up credits of $6,500 is June 30, 2010. All contracts had to be signed by April 30. The National Association of Realtors® estimates that there are as many as 180,000 buyers who signed their contracts on time but risk not closing by June 30. The measure, if passed, would extend the closing deadline until September 30.
Keep posted for important updates on this important topic.
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