On Wednesday, the Senate approved an extension plan to give homebuyers an extra three months to finish their qualifying process for the federal tax incentives that were set to expire on June 30. Under the current terms of the tax credit, homebuyers had to have their home purchase under contract by April 30 and closed by June 30 in order to receive tax credits of up to $8000.00.
The extension, approved by a 60-37 vote, only allows homebuyers who already have signed contracts to conclude their transactions by September 30. If this extension had not passed, about 180,000 homebuyers who already had signed contracts would otherwise miss the June 30 deadline and therefore miss out on the tax credits. Congress acted promptly and now the mass gridlock that the mortgage lenders were facing due to the shear number of transactions ahead will be reduced and all closings will be achievable with the extra time allotted.
NOTE: At blog time, the House vote is still pending.
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