Mortgages Blog

Finance Blogs » Mortgages » Congress might extend tax credit closing deadline

Congress might extend tax credit closing deadline

By Holden Lewis · Bankrate.com
Thursday, June 17, 2010
Posted: 12 pm ET

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.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
3 Comments
Kay Bell
June 17, 2010 at 2:20 pm

This is going to be fun. Baucus and Reid still are having trouble getting the 60-vote supermajority to push through the tax extenders bill, of which this is a part. Between these languishing tax breaks and the still-dead estate tax, you've got to wonder what in the heck is Congress doing, taxwise at least, this year?!