The Senate has approved a measure to extend the deadline for claiming the homebuyer tax credit. Now it's up to the House.
According to a report in The Wall Street Journal, some homebuyers aren't going to be able to make the June 30 deadline for closing. The Senate agreed to extend the deadline to Sept. 30.
The homebuyer tax credit, worth up to $8,000, had two deadlines. Homes had to be under contract by April 30, and closing has to be completed by June 30. Most closings can be accomplished within two months, but not always.
The big exception is homes under construction. Bad weather and material shortages can push home construction weeks behind schedule. The beneficiaries of a deadline extension would mostly be people who bought homes that were supposed to be completed in June, but won't be finished until later.
The National Association of Realtors says an extension could help up to 180,000 homebuyers. The Realtors cite paperwork delays as a major problem confronting buyers who are struggling to meet the June 30 deadline.
The Senate-passed measure affects only the June 30 deadline for closing. It doesn't help people who didn't sign purchase contracts by the April 30 deadline.