Congress Extends Tax Credit Closing Deadline

Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623).

The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is September 30, 2010.

There will be no gap between June 30 and the date the President signs the bill into law. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

The extension was necessary to help an estimated 200,000 home purchasers qualify for the government tax credits because many are involved with transactions that are lasting over 60 days. These transactions include short sale and bank-owned (REO) properties.

Source: Realtor.org (6/30/2010)