This is a breaking story, more to follow.
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If you would like to learn more about the First Time Home Buyer Tax Credit, please contact us or call us at 877-868-2503, and an expert loan officer will be in touch with you shortly.
Update 7/1/10: They waited until the very last minute, but last night the Senate passed the stand alone bill from the House of Representatives that would extend the closing date to claim the first time home buyer tax credit from June 30th until September 30th. The measure passed the Senate unanimously and President Obama is expected to sign the bill into law today.
Update #2: According to this article from Reuters and this one from Bloomberg, the measure has passed the House, 409-5.
Update: reader Karen kindly passed along this link to the legislation in the comments section. Thanks Karen.
We have learned that the House of Representatives is due to vote on the Homebuyers Assistance and Improvement Act of 2010 and the Restoration of Emergency Unemployment Compensation Act. (Hat tip to commenter David B. who alerted us to this in the comments today). It appears as though these are two separate bills so that opposition to the unemployment extension would not keep the extension of the closing date of the first time home buyer tax credit from passing.
This would be great news for many of you who signed a purchase agreement prior to April 30th but are having difficulty closing before June 30th due to the slow short sale process and the backlog facing many lenders right now.
This is a developing story and I will do my best to stay on top of it throughout the day. It is estimated that if the closing date is not extended, as many as 180,000 potential home buyers could back out of their purchase agreements.
On a side note: I have been somewhat overwhelmed by the response in the comments section and have enjoyed hearing feedback from readers. For all of those of you who are relying upon this extension, I hope it passes quickly.
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JACK
June 29, 2010 @ 11:17 am
CHECK OUT THE FOLLOWING LINK:
http://www.automatedtrader.net/real-time-dow-jones/2192/house-to-vote-to-extend-closing-period-for-homebuyer-tax-credit
WHATS GOING ON??
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reese
June 29, 2010 @ 11:31 am
Thanks for the updates! Any word what time tomorrow?
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Jon
June 29, 2010 @ 11:35 am
This is great news. If this bill does not go through our sale will not go through. If the vote passes from the house, is the tax credit then officially extended?
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Derrick
June 29, 2010 @ 11:48 am
I am counting on this to pass also or my sale will not go through. The paper work has taken forever and a day to get processed with my short sale. I’ll be crossing my fingers and praying.
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Paula
June 29, 2010 @ 11:58 am
Mr. Kraus, Thank you for keeping us updated and I to tip my hat to David B. I’m nervous!
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Greg
June 29, 2010 @ 12:07 pm
Keep in mind that 180,000 affects two side 360,000 plus the agents, title companies, future revenue insurance companies and banks so this number is actually substantially higher
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Andy
June 29, 2010 @ 12:10 pm
thanks for the update. Hopefull it gets approved.
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Brian
June 29, 2010 @ 12:46 pm
Just watched the live house video feed and they discussed this bill. It looked to receive wide support but the yea/nay count was suspended. I’m not familiar with how this all works but it looks like every bill they’ve introduced today has had the vote suspended. Maybe they do them all at once? At least it appears to have support from both sides. I hope it passes!
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Jules
June 29, 2010 @ 12:52 pm
I keep reading for “First Time Home Buyers … for the $8,000.00 Tax Credit” ~
There is NO mention of previous home buyers that was originally slated for a tax credit of $6,500.00. I’m hoping there has not been a change; as the the woman purchasing my parent’s Condo was counting on this. The sale could possibly be terminated, if this does not pass and/or does not include previous home buyers.
Does anyone know for certain on this ?
Thank you ~
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Michael Kraus Reply:
June 29th, 2010 at 1:14 pm
Jules, I have not heard mention of the $6,500 credit. Logically, one would assume it would be extended. Here is the text of the legislation:
http://www.gop.gov/bill/111/2/hr5623
I believe the repeat credit would be included under this act based on the language, but I am not 100% sure, so don’t hold me to it.
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DEDE
June 29, 2010 @ 1:20 pm
I HOPE THAT 1ST TIME HOME BUYERS GET THIS EXTENSION (I TRULY DO)AND SOON. THEN THE PRESIDENT CAN TELL US ALL THAT THE ECONOMY IS LOOKING GOOD. LETS HOPE THEY CAN GET THE UNEMPLOYMENT EXTENSION PASSED AS WELL BEFORE THEY HEAD OFF FOR VACATION.
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Misty
June 29, 2010 @ 1:27 pm
So wanting that extension to pass. I would feel like such a FOOL if I went ahead and closed on a house that I bought planning on getting that tax credit.
And by the way, the government has been giving people money to/for buying houses for as long as I can remember
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Nate
June 29, 2010 @ 1:35 pm
The bill is H.R. 5623. Not much info on it yet.
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Gail
June 29, 2010 @ 1:39 pm
This bill is set to be voted on before the end of the week (to resolve items with other issues in the bill).
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Katie
June 29, 2010 @ 1:44 pm
If it passes the house today which it looks like that is a “Yes” does that mean it is official or does it have to go back to the senate?
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Kelley
June 29, 2010 @ 1:55 pm
Watching on CSPAN. It appears the house just passed the extension 409-5. Hooray!
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Nate
June 29, 2010 @ 1:56 pm
On motion to suspend the rules and pass the bill, as amended Agreed
http://clerk.house.gov/evs/2010/roll401.xml
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M OKeefe
June 29, 2010 @ 1:58 pm
HR5623 Passed the house today
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Ian Malc
June 29, 2010 @ 1:58 pm
Thank you for this information. My wife and I are trying to close tomorrow as first time home buyers ( new construction /contract signed in January 2010) , but we haven’t yet received the occupancy certification from the city . As we keep our fingers crossed, I am anxiously looking forward to the next 48 hours to pass.
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T
June 29, 2010 @ 2:08 pm
The house approved it!!!
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Todd
June 29, 2010 @ 2:09 pm
The House passed it. http://kratovil.house.gov/index.cfm?sectionid=22&parentid=21§iontree=21,22&itemid=469
Tomorrow, the senate will probably vote on it. It looks like this extension might actually happen after all.
That’s good news for many of us.
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Nate
June 29, 2010 @ 2:14 pm
@Katie, I think it goes to the Senate because it is a standalone bill now. It should pass seeing the Senate passed the amendment for the Tax credit part of the bill last vote. I am still trying to find details. Because the bill did not get a number until today there is not much info out there on it so there are not many people taking about it online. Should be a bunch of info on the timeline of the bill by tomorrow.
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Austin
June 29, 2010 @ 2:42 pm
@Jules,
this bill is an extension to the EXISTING homebuyer tax credit… that means it will extend whatever is included in the original tax credit. So, YES, it does cover the $6500 credit as well.
Does anybody have anymore info on where the bill is in the Senate?
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Amanda
June 29, 2010 @ 2:43 pm
We are stuck in the same situation – waiting on the bank to finalize our short sale purchase 1 day before this credit ends. We’ve been trying to purchase a home since we got pre-approved last summer, putting offers on more than a dozen homes and getting beat by cash offers/investors. We finally had one offer accepted by the sellers in mid-January and waited patiently until April 30 to hear from their lender to accept our offer. We moved to sign our closing documents by early June and found out that a large lien had posted to the property in the mean time. We’ve been fighting with the sellers’ lender for 3 solid weeks now trying to get this finalized, and things have not moved along at all. Now we’re going to lose our tax credit after waiting patiently on this single property for 6.5 months! We’re praying for this extension.
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Sasha
June 29, 2010 @ 7:14 pm
I really hope that this extension will passed. I signed a contract in January for a new construction, but can’t close on the house until get the lights and water connection. Due to the fact that I have to cross over somebody’s else property for the lights and water connection, I can not the individual to sign the necessary papers needed for this transaction. Which means that I will not be able to close on June 30th. I have been trying to complete this since February.
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breckinridge
June 29, 2010 @ 8:56 pm
Hello Nate, I think you are absolutely RIGHT!!!!!
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SarahB1
June 29, 2010 @ 9:45 pm
I am happy for all the folks that this closing extension affects. But, darn, I am sitting here in limbo on my unemployment checks and it is driving me crazy. I didn’t even make it to the first tier before having my benefits put on “hold” until this legislation gets passed (if it ever does). So, please know that those like me have been rooting for you and are happy for you. But, also, please pray for us. I don’t know how much longer I can hold on. I am 52 years old, have three college degrees (including a master’s degree) and worked full time for more than 30 years when the health care agency I worked for closed for good. I used to get nearly every job that I applied for when I was younger. Now, I am lucky to get an interview. I am really starting to get depressed here and am feel like a failure.
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carmen
June 29, 2010 @ 10:52 pm
You better look into the tax credit well there are alot of people and im one of them that was a first tiem home buyer and was denied it……..they said it was because i filed jointly with my husband 2 years prior in a home he owned before we were married and this house i bought in my name only but because i filed jointly with him and he owned the other house in his name only but i filed with him it made me somehow connected to that house because he claimed the interest on that house.its a farce watch yourself
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David B
June 30, 2010 @ 7:16 am
UPDATE: The stand alone version of the bill for home tax credit extension HR 5623 will not likely be voted on today (Weds). Senator Reid continues to push his “bundled” bill HR 4213 that includes the home extention.
Good news….they vote today in the Senate on HR 4213
Bads news….same thing could happen last week.
Good news again…. Senate still has HR 5623 as the fall back for us.
Note also, I am pretty sure HR 4213 would have to go back to the House one more time even if it passes today in the Senate.
Point is, any home buyer tax credit extension will not be firmed up by days end or the deadline. BUT, these measures can be RETROACTIVE.
Still, best that Congress gives us the extension by Friday’s end.
Confused yet???
http://news.firedoglake.com/2010/06/29/senate-to-vote-on-ui-extension-homebuyers-tax-credit-tweak/
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alex
June 30, 2010 @ 7:38 am
Don’t re-elect or even better Recall your senator or congressman that voted no to extended unemployment benefits.Failur of an elected official to do their job is malfeasance.
Here’s how you do it:
go to:
http://www.ehow.com/how_2096900_recall-us-senator.html
The list is as follows:
goto:
http://www.ehow.com/how_2096900_recall-us-senator.html
The senators voting no are:
Alexander (R-TN)
Barrasso (R-WY)
Bennett (R-UT)
Bond (R-MO)
Brown (R-MA)
Brownback (R-KS)
Bunning (R-KY)
Burr (R-NC)
Chambliss (R-GA)
Coburn (R-OK)
Cochran (R-MS)
Collins (R-ME)
Corker (R-TN)
Cornyn (R-TX)
Crapo (R-ID)
DeMint (R-SC)
Ensign (R-NV)
Enzi (R-WY)
Graham (R-SC)
Grassley (R-IA)
Gregg (R-NH)
Hatch (R-UT)
Hutchison (R-TX)
Inhofe (R-OK)
Isakson (R-GA)
Johanns (R-NE)
Kyl (R-AZ)
LeMieux (R-FL)
Lugar (R-IN)
McCain (R-AZ)
McConnell (R-KY)
Nelson (D-NE)
Risch (R-ID)
Roberts (R-KS)
Sessions (R-AL)
Shelby (R-AL)
Snowe (R-ME)
Thune (R-SD)
Vitter (R-LA)
Voinovich (R-OH)
Wicker (R-MS)
Alexander (R-TN)
Barrasso (R-WY)
Bennett (R-UT)
Bond (R-MO)
Brown (R-MA)
Brownback (R-KS)
Bunning (R-KY)
Burr (R-NC)
Chambliss (R-GA)
Coburn (R-OK)
Cochran (R-MS)
Collins (R-ME)
Corker (R-TN)
Cornyn (R-TX)
Crapo (R-ID)
DeMint (R-SC)
Ensign (R-NV)
Enzi (R-WY)
Graham (R-SC)
Grassley (R-IA)
Gregg (R-NH)
Hatch (R-UT)
Hutchison (R-TX)
Inhofe (R-OK)
Isakson (R-GA)
Johanns (R-NE)
Kyl (R-AZ)
LeMieux (R-FL)
Lugar (R-IN)
McCain (R-AZ)
McConnell (R-KY)
Nelson (D-NE)
Risch (R-ID)
Roberts (R-KS)
Sessions (R-AL)
Shelby (R-AL)
Snowe (R-ME)
Thune (R-SD)
Vitter (R-LA)
Voinovich (R-OH)
Wicker (R-MS)
Alexander(R-TN)
Barrasso(R-WY)
Bennett(R-UT)
Bond(R-MO)
Brown(R-MA)
Brownback(R-KS)
Bunning(R-KY)
Burr(R-NC)
Chambliss(R-GA)
Coburn(R-OK)
Cochran(R-MS)
Collins(R-ME)
Corker(R-TN)
Cornryn(R-TX)
Crapo(R-ID)
DeMint(R-SC)
Ensign(R-NV)
Enzi(R-WY)
Graham(R-SC)
Grassley(R-IA)
Graham(R-NH)
Hatch(R-UT)
Hutchison(R-TX)
Inhofe(R-OK)
Isakson(R-GA)
Johanns(R-NE)
Kyle(R-AZ)
LeMieux(R-FL)
Lugar(R-IN)
McCain(R-AZ)
McConnell(R-KY)
Nelson(R-NE)
Risch(R-ID)
Roberts(R-KS)
Sessions(R-AL)
Shelby(R-AL)
Snowe(R-ME)
Thune(R-SD)
Vitter(R-LA)
Voinovich(R-OH)
Wicker(R-MS)
If one of these is your senators, and you live in the right state, start a recall or don’t re-elect!!!
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alex
June 30, 2010 @ 7:39 am
The republican’s weren’t worried about the deficit when that big insurance company and their friends the Wall Street execs were giving themselves bonuses with taxpayer money!!! Next election – let Congress feel the sting of the unemployment lines!!! No more raping and pillaging the middle class!!! – How many years have you paid taxes? 30? 40? Your government bails out bankers and Wall Street execs using your tax dollars – but unemployment is allowed to expire? What happened to “by the people” or “for the people”? Or are the big campaign contributors the only “people” who count to congress? They are playing games AGAIN FOR THE THIRD TIME while you are wondering how to feed your kids? Figure it out! Malfeasance – Failure of a public official to perform their duties!!! Next Election MAKE YOURSELF MATTER BY VOTING!!! 10% unemployment carries 10% of the vote! Use it!! Fire them all next election or recall every Congress member NOW for Malfeasance – Failure of a public official to perform their duties!!! Next Election – Lets get people elected who actually represent all the People- this current congress represents only special interest groups!
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Roberta
June 30, 2010 @ 7:54 am
Forget the tax credit for home buyers. I have already been forced to short sell two homes. And the goverment is trying to steal the only property we own. Where is the unemployment extension. I have worked for 40 yeaars full time and had 4 children without ever being unemployed until last year. Can someone caculate the dollars spent by my employers and myself that has been put into the system throughout the years. This is unacceptable.
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Paula
June 30, 2010 @ 8:09 am
Does anyone know when the voting process starts today? If they do not come to an agreement today on the tax credit extension, then what?
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sam
June 30, 2010 @ 8:29 am
While it appears that the closing deadline will be extended, you can always close on a contract for deed, and then you have plenty of time to refinance to the conventional mortgage. Our group is using the contract for deed on a national basis, primarily in multi-family projects, but all it takes is for the seller and buyer to sign, and the IRS recognizes this closing for the first time credt. You can see it on their FAQ under seller financing. The docs are downloadable from any legal site. Fingers crossed the extension passes. http://www.americanhomeownershipinitiative.com
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EK
June 30, 2010 @ 8:36 am
Does anyone know what time this is suppose to be voted on today? I have all my fingers and toes crossed that this happens!
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gabriel
June 30, 2010 @ 9:51 am
I would like to share the following link with you all. It shows who voted against this bill the last time.
Please call and write your representative, so they know voters are paying close attention at this issue. We need the closing time to be extended due to a very slow mortgage approval.
http://www.opencongress.org/vote/2010/s/200
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reese
June 30, 2010 @ 3:14 pm
Any updates?
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Karen
July 1, 2010 @ 8:16 am
The House approved it earlier and the senate approved it yesterday. I think it is a done deal.
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Joes credit agreements
July 5, 2010 @ 5:19 am
This should help stimulate the housing market and hopefully not drive people into debt later.
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Vegas Justin
July 5, 2010 @ 4:08 pm
I signed a purchase agreement on a house on January 14th. The seller agreed to the terms and we signed a purchase agreement. It is a cash transaction and I will be using it as my primary and only residence. It is a short sale so we had to wait for the banks to approve the deal. On June 28th we got the counter offer from the banks involved. They want me to pay $10,000 more than the seller agreed to and want the seller to pay $10,000 cash towards the second mortgage on the house. The bank we are dealing with is Bank of America, and they have been terrible to deal with to say the least. I was worried about losing my tax credit and was relieved to see the extension approved however I don’t know if my circumstance makes me eligible. Basically the point of concern is does the signed purchase agreement between the seller and I for the agreed upon amount signed on January 14th qualify as a signed purchase agreement/contract despite the fact that the amount the banks are asking for differs by $10,000.
The day after the agreement was signed I put $2,000 cash into an escrow account and sent the banks a copy of my bank statement demonstrating that I had enough funds to cover the transaction. I was prepared to move forward then and never imagined that my tax credit would be in question. My agemt has told me that the signed agreement will qualify me for the credit, but I don’t really have faith in what she has told me as she has not really had answers for me on other issues the way you would expect a professional to have.
I apologize for the long post but the issue basically boils down to this: Is a signed purchase agreement between a buyer and seller in which earnest money was collected considered a contract under the tax credit even if the terms are being changed by the banks who hold the loan on the short sale home? An agreement was signed and approved by the buyer and seller well before the June 30 deadline, but the banks, besides taking 6 months, want to change those terms. Does this mean I cannot take advantage of the tax credit? I need a definitive answer because if I’m not eligible or the credit I am not going through with the sale. Please help my children and I are in limbo and need a firm answer. Thank you so much.
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Michael Kraus Reply:
July 6th, 2010 at 11:32 am
I’m afraid I don’t have an answer for you. This seems like a question that will need to be answered by an attorney or somebody at the IRS.
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