Wednesday June 16th, the Senate approved the proposal to give homebuyers a 3 month extension to finish qualifying for tax incentives that boosted homesales this spring.
According to the Associated Press: The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
Most in favor of the proposal (60-37) will only allow homebuyers that have already signed contracts to finish at the later date.
The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.
“If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts,” the Realtors said a a letter to lawmakers.
The bill (HR 4213) still has to be voted on by the Senate and House, then signed by the President into law.
This is great news to me and a lot of the homebuyers I am currently working with, so make sure to check with your tax advisors for qualification.
