For Buyers, Mortgage & Financing

Senate OK’s New Tax Credit Closing Deadline

You may have seen today’s Inman News article reporting on the Senate’s approval of an amendment to a bill that would, among other things, provide for an extension of the June 30 closing deadline for buyers who took advantage of the federal government’s tax credit.

While the Senate has approved its version, differences with the House version must still be reconciled before the amendment can take effect.

This is certainly a positive development for those homebuyers who took advantage of the tax credit but who are having difficulty meeting the June 30 closing deadline due to the significant increase in activity for lenders, title agencies and other related services required for closing.

The amendment, should it be passed, provides an extension only to those whose homes were under contract by April 30, extending the deadline to close the transaction another three months to September 30. The amendment does not extend the benefits of the tax credit, but applies only to deals already in the pipeline.

My office will continue to monitor the progress of this important piece of legislation.