Update 6/25/10: The Tax Extenders Bill that the amendment to extend the credit failed to overcome a filibuster by Republicans in the Senate. As of now the closing date for the tax credit is still June 30th.
DEVELOPING STORY UPDATE 6/15/10: This proposal now appears likely to pass in the Senate. See updated article here.
An initiative was introduced in the Senate yesterday that would give home buyers attempting to claim the first-time home buyer tax credit an additional three months to close on their homes.
In order to claim the tax credit, a potential buyer needed to sign a purchase agreement prior to April 30 and had to close on the home prior to June 30. Under the new proposal introduced by Senator Harry Reid, those who signed a purchase agreement by April 30 would now have until September 30 to close their sale.
Along with historically low mortgage rates and low home prices, the tax credits hoped to fuel home sales in the latter part of 2009 and early 2010.
It can take a long time to close on a home because lots of paperwork needs to be completed and filed by the buyer, seller, and various parties attached to the sale. The process has been made somewhat more complicated because of the disclosure requirements of the Good Faith Estimate (GFE) and the Real Estate Settlement Procedures Acts (RESPA), two acts aimed at increasing the transparency of lending process. Additionally, the expiration of the tax credit created a flurry of home sales, which has caused a backlog with lenders and processors.
According to the National Association of Realtors, almost 180,000 potential buyers who signed a purchase agreement before April 30 would fail to close on their home before June 30 because of the delays.
According to an article in today’s Washington Post, Democrats are having difficulty getting enough votes to pass the bill, which has a variety of other tax initiatives attached to it.
Are you attempting to claim the tax credit? Are you having difficulty closing before June 30? Let us know in the comments section.
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GH
June 11, 2010 @ 9:16 am
I think it would be great if they could extend this credit. I am in the process of building a home and will be moving into it in July, but I may not have my occupancy until July. In order to get the tax credit, I need to have the occupancy dated by June 30th I closed my loan in December of 2009 and have already been paying monthly payments on my construction loan. This extension would allow people already under contract to have the extra time to fully close on their loans. GH
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Stacie Summers
June 11, 2010 @ 9:58 am
My husband and I found the house we love and had a contract signed by the sellers on 3/3/10. The problem is, the home is a short sale. We have been waiting for it to go the the appraiser, negotiator and now the investor. We are in the last step, but we cannot get ahold of the bank. At this point our lender has told us that there is not enough time for us to get the lender’s appraisal, our inspection and paperwork done in time for a closing date of june 30th. The most frustrating thing is that we have already turned in all of our paperwork, lined up an inspector, put down our earnest money and we are going to lose the $8000 first time home buyer credit because the bank is taking too long to make a decision. We are extremely upset because we love this house and we are putting everything on hold until we know and there is no sign of knowing anytime soon.
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Julie R
June 11, 2010 @ 10:20 am
YESSSS! I am trying to move mountains to get keep this $8K credit I earned when I signed a binding contract on March 8th (in keeping with the April 30th deadline), and like thousands of Americans, am hostage to being been caught in the web of overwhelmed, understaffed, financial institutions (many who were bailed out themselves) that simply cannot meet the June 30th deadline.
Sadly, this is NOT in the hands of the Home Buyer who has NO control over the speed, or lack thereof, of banking institutions ability to meet escrow closings. For this inability, we, the Home Buyers will suffer. A number of us may even walk, which would then defeat the very purpose that this Act was extended earlier and result in a further depressed economy and contribute to more decaying neighborhoods.
ENOUGH! Please write your Senators TODAY and if not for yourself, but for preseration of your property values, urge that an extension, not a NEW credit, but an extension be enacted for those that met the April 30th deadline and are fighting to keep the credit they earned in following directions.
It has become obvious that well-intended legislators forecasted the June 30th deadline as possible, but reality has proved otherwise. Please urge readjustment of that deadline. Thanks you!!!!
– Prospective First Time Home Buyer
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Pammy
June 11, 2010 @ 10:33 am
I feel for you Stacie! My husband and I have had our contract accepted by the sellers since March as well! We are so frustrated with the whole thing, the bank has not communicated anything at all… We factored the 8K into our offer so we will be suffering if this doesn’t get extended! We will also be devastated because we want this house more than anything! Good luck to you!
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COCO
June 11, 2010 @ 11:05 am
I pulled a contract from another home i had signed in March, but it was not going to meet the April 30th deadline, so i pulled the contract, Now i signed another contract in May but it still sucks that I wont get the Tax Credit, its not the Clsoing that should be extended they should acknowledge signed contracts on and after April Up until June 30th with a closing date of Sept., because if the purpose is to get homeowners in homes and give the benefit then give it to the 1st time home owners without all the dam black tape
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Christine Foley
June 11, 2010 @ 11:22 am
My family has been in contract since March for a short sale and we have everything lined up and done all we need the the acceptance of our offer in writting from the 3rd party bank (who it is who knows no one will tell us). They have told the sellers attorney and realtors they verbally agree but its been 4 weeks since that was said and we are still waiting for it in writing so we can close by the 30th of June for the TAX CREDIT. It is not right for us to loose out on the $8000 tax credit because they are dragging their feet.
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julie
June 11, 2010 @ 11:39 am
We have built our home and have had our certificate of occupancy since October 2009, but because of this problem or that problem we haven’t been able to close on the mortgage yet. With everything now a go (in the last week) I’ve now been told by our broker there is no way the processor can get us closed before the end of June. He has 100′s of loans in the pipeline trying to close. We need the extension!
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Debbie
June 11, 2010 @ 11:40 am
I agree with all of the above. I signed my contract in time for the April 30 deadline for a short sell and just found out the house will not be available until July 1 (one day after the deadline). My purchase price was based on the incentive also. I was going to use the money to replace some of the items in the house, that way the money did not have to come out of my pocket.. I really love the house too. Why do the closing date have a deadline. It is nothing we can do once we do all the paperwork it is out of our hands…
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Lauri
June 11, 2010 @ 1:27 pm
It would be great if this deadline was extended. We signed before the April deadline and now because of the bank and paperwork isssues and WAITING over 5 weeks to even get answers on things……it’s going to be impossible to get the closing done by end of June as we are at June 11th as I speak. The rebate was one of the reasons why we decided to go ahead and this time and buy a house and now because of the time the banks are taking, we will lose out!!
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Tabitha
June 11, 2010 @ 2:45 pm
WHAT a relief if would be to have this happen…….I have had a contract on a house since Febuary due to the crazy process and paper work between lenders and lein holders we are still in the process…we are now in JUNE. and will not be closing this month. Extending this credit will make it a possibility to still receive the credit. All this hard work, stress, effort could be out the window if this is not passed. On the other hand…… why is it taking sooooo long to make the purchase….bank have 1000′s of houses sitting around unoccupied. at least 30 in my neighborhood. I am a hard working middle class american…just what to live the dream and own my own home. If i have learned anything……..a short sale is anything but short…….
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Jo
June 11, 2010 @ 2:53 pm
We would sure love to see this extended as we are caught in the same boat as many others are, as the appraisers and banks are so far behind. We had a purchase agreement in March and aren’t sure that we are going to hit the June 30th deadline. If that was the case we would’ve rented longer to have more money saved up. The tax credit was the reason we built sooner than later. After all, this is helping the economy with the extra spending that is taking place. Sure would be nice to see an extension.
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Nabil Nadim
June 11, 2010 @ 2:54 pm
It would be great, I would feel like the goverment really cares. I signed my contract april23rd but the mortgage company gave me my committment but cant close until mid july since they have so many apps and the whole world is trying to close by june 30th
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Derek
June 11, 2010 @ 4:14 pm
We had a offer on a short sale and we were scheduled to close at the end of June on our home…but the seller of the property is being sued because there were 2 other couples that put offers in..We were the first couple to put the offer in correctly to the bank so we were choosen..now the seller is being sued by the 2nd couple that didn’t get the house..A lawsuit could hold up the property for 4-8 months our realtor said so we have purchased another house…The bad thing is we bought the other house Mid May and are going to lose the 8k that we would recieve from the previous purchase…I wish they would extend the purchase date for at least 2 months as long as you can close by September after all this money is suppose to stimulate the economy..
Best of luck to all!
Derek
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Still Waiting
June 11, 2010 @ 5:01 pm
Good luck getting the feds to pay up… I filed in February and don’t expect my credit until August. Don’t believe them when they 4-6 weeks. More like 20-25.
Some stimulus when they don’t want to even give you the money.
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James Minder
June 11, 2010 @ 5:03 pm
Be very careful. The IRS is looking for an excuse NOT to pay the credit, even if it isn’t in the spirit of the Act.
If YOU AND YOUR SPOUSE did not both jointly own BOTH the selling property and the purchased property for the period required under the long time homeowners credit, then you cannot claim either credit.
I found out AFTER we purchased out new home that since I did not own the OLD home, she couldn’t take the long time homeowner’s credit ($6,500) even though she met all the other requirements. And I was unable to claim the first time home buyers credit ($8,000) because I was married to a home owner.
One could see the point of me not being permitted to claim the 1st time homebuyers credit, since I was married to a homeowner. It could be interpreted as dishonest and fraudulent.
But by the same token, I view the IRS interpretation of the long time homebuyer’s credit as equally fraudulent by the IRS and not in keeping with the intent of the legislation. Rather, just a way of cheating the taxpayer.
Many people in our same situation made the decision to purchase homes based in large part of that long time home buyers credit. We bought our home in December and moved in on December 5th. The IRS interpretations re married persons were published between 12/14/2009 and December 29, 2010, after many people already purchased a new home.
LESSON: Watch Out for the IRS. The legislators will sell you on buying a new home and then after the fact, the IRS takes away promised benefits.
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E
June 11, 2010 @ 6:09 pm
I signed my Contract in October, it took Countrywide/Bank of America until May 21st, before they made a Counter offer. I accepted their Counter Offer on May 21st and now they are delaying the sale again because they say they need approval from another investor. Extending or removing the closing deadline, as long as you had a contract before April 30th, would make a lot of sense and help people like me who have been waiting around while banks take their time thinking they can keep squeezing more money out of us first time buyers.
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Jennifer Lewis
June 11, 2010 @ 6:44 pm
It would be wonderful if it was extended. My husband and I are having trouble closing in time due to the fact that the under writers are so over booked with files. thank you Jennifer Lewis
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Jen
June 11, 2010 @ 7:15 pm
This would be so great! I signed a purchase agreement on a short sale at the end of January and am still waiting to close! The seller’s bank has had my acceptance of their counter since May 17 and I don’t have their final approval letter yet. At the rate they’re moving, I will never be able to do my inspection, appraisal and, since it’s an FHA loan, any repairs and reinspection required. It would mean a lot to have the government ackowledge that we tried to play by the rules and get all our ducks in a row as buyers, but the banks haven’t been cooperating.
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LV
June 11, 2010 @ 7:39 pm
We signed a contract some time in September and waiting on the shortsale to be completed. Still waiting on teh bank to approve. Hoping to close as soon as possible, This will definitely help us, if we extend the closing date.
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AG
June 11, 2010 @ 9:02 pm
The credit is what prompted me to purchase. Unfortunately its a short sale and we are still pending the approval of the 2nd mortgage. An extension would be wonderful. With all of the pending short sales, they should really consider extending the credit. The buyers shouldn’t have to suffer the loss, due to banks overload or lack of urgency. My fingers are crossed for all you as well.
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erika
June 11, 2010 @ 9:13 pm
I hope that the tax credit does get extended I have been in a contract since Feb 22 on a new home construction and now they dont know if I will be closing at the end of this month because of all the homes hey are having to build…. I was counting on the $8 as well.
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Mark And Ashlie
June 11, 2010 @ 9:14 pm
We are doing the American dream we have just got married and both started great job and now been in contact for 3 months trying to buy our first home so Yes we need this extended we are 3 weeks from closing and our realtor has been a big problem and has not been on the ball so it has put us behind ! So PLEASE extend this bill !!! We want to start our family…
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Luisa in Miami, Fl
June 11, 2010 @ 11:34 pm
My closing is on hold becuase I cannot obtain flood insurance. This is because FEMA is in Hiatus. The bank loan requires I obtain new flood insurance policy. So what happends if I cannot close before June 30th due to FEMA being in Hiatus? We need the government to extend the closing deadline!!!
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Julie R
June 12, 2010 @ 12:08 am
This article stated: “According to an article in today’s Washington Post, Democrats are having difficulty getting enough votes to pass the bill, which has a variety of other tax initiatives attached to it.”
Perhaps if we all rally together and raise the issue to our Senators today, we might be able to help gain the Senate support needed to pass the bill. Othewise we are all left without the credit. Please dont’ wait and write or email your Senator today.
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flo
June 12, 2010 @ 1:36 am
IT WOULD BE GREAT IF YOU EXTEND IT UNTIL 12/30/10.
GIVES EVERYONE ENOUGH TIME
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carrie
June 12, 2010 @ 5:40 am
Because of builder delays, we would benefit from the 3 month extension. Even though we signed our P&S in Feb, we’d be unable to claim the tax credit without the extension as our closing date has moved past June 30th. I’m sure others are having new home construction delays that put them in the same predicament.
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Rob
June 12, 2010 @ 10:56 am
I think it would help so many people trying to take advantage of this program. I am currently trying to close on my house that was just approved but its getting to be tough to try and close by the date. It would make the process so much easier and make more homebuyers if the program was extended.
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Gary Smith
June 12, 2010 @ 11:54 am
In nine years in the mortgage origination, I have not seen loans take nealy as long as they do now. Every stage takes far longer. Is it fair for first time home buyers who entered a binding contract in advance of the April 30, 2010 deadline to lose $8,000 because the lender they selected cannot complete their loan by June 30, 2010?
I support extending the first time homebuyer credit to those who entered binding contracts by the deadline of April 30, 2010. They met the requirement and cannot control or effect lender progress.
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Phyllis Rothwell
June 12, 2010 @ 12:45 pm
I am a Realtor in Arlington, WA and my clients are trying to purchase a home that is a short sale. They have been in contract since January with the sellers but have to wait for underlying lienholder approval. They have run out of time for the tax credit so I am hoping this bill will pass. Thank you for your good work.
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Stacy K
June 12, 2010 @ 2:05 pm
My husband and I are in same boat as all of the above stories! Signed a contract on a short sale March 30, and did condcut an inspection, however, we found water damage and went back to the bank with the estimate of the damage and instead of simply taking that money off the purchase price the bank decided to conduct their own inspection of the damage. We were told that would take 1-2 weeks, and that was two months ago! The bank has not responded to us with even as much of an update and we missed our closing date, with no new closing date planned! The only upside to this is the mortage rates have gone down since we locked in our rate in March, so we are now eligable to go back and lock in at the new lower rates!!
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R J
June 12, 2010 @ 2:18 pm
YES, YES, YES and Pleaaase YES!
We have been struggling with a foreclosure we have a contract on since Oct. 2009. It is still pending. The bank is taking forever to have things cleared.
I really hope the closing date gets extended to Sept. 2010.
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Sandy
June 12, 2010 @ 2:21 pm
It would be really great if the government could extend the closing data further. I have signed my contract for a new home, the construction will be completed only in the fist week of July and then need sometime for closing. If this is not extended, I will be in the risk of losing 8k tax credit. That’s SAD.
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Victor
June 12, 2010 @ 3:06 pm
Why not extend the whole program to help those of us still trying to sell? I’d prefer that the old program just be extended until the end of the year.
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Gene
June 12, 2010 @ 4:56 pm
GH, Stacie, Julie R, Pammy, Christine, julie, Debbie, Lauri, Tabitha, and Jo, I know how you feel. I’m in upstate NY. NY loves paperwork and high taxes. We now have no less than 6 lawyers in this deal, all with their fingers in the till!
I have a purchase offer dated 2/27/2010. We were to close in 4/23 but they found 2 small leans against the title. The delay caused the mortgage to have to redo the application. Then I didn’t qualify like I did in Feb as the VA, in March, changed what they accept as income. Started over getting finance and now have 2 banks ready to deal. The local bank should have a commitment letter by next Fri. If not approved there I have an online bank that’s pre-approved me and ready to deal. If all goes ideally, we should close by end of June. However, just one hang up and it could go past the deadline. Realtor says it would be a shame to lose 8G’s because of one week! I agree. The house is awesome, sits on 2 acres and has a river in the back yard. It’s a sweet deal at under 100K. The 8G’s extra would be icing on the cake and used for many needed upgrades (kitchen, carpet, paint, etc.) as house sale is ‘as is’.
If they extend it would sure relieve a lot of anxiety! As like many of you have experienced, banks have been a**holes getting this short sale through! If this sale fails the prop goes into foreclosure anyway and sits for a year or more. Go figure!
Anxious, bewildered, frustrated, yet hopeful! Say a prayer for me as I will pray for all of you.
Write your Congress folks too.
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Sara
June 13, 2010 @ 9:39 am
It would be great, especially for construction projects, they really depend on the weather because of spring rainy season most of the days were gone with no work. It’s very difficult to complete the work by June 30th and get the Occupancy certificate. It would be indeed helpful if June 30th deadline is extended to September 30th.
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SellerNY
June 13, 2010 @ 10:35 am
I am a seller and my buyers qualify for the credit and due to request for permits, co’s it will make it impossible for us to close in time for the June 30th deadline and now they are threatening to pull out of the deal, if an extention is granted we will have the co’s in time not to have to leave a hefty escrow amount which we don’t have, they get their credit and buyer and seller are happy…..
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Jessica
June 13, 2010 @ 11:35 am
I signed a contract on 3/24 but the sellers did not sign it back until 4/16. To top it off, the property is in short sale and has an addendum attached to the contract that the bank cannot go after the sellers for the balance of their mortgage if they accept my offer. The bank is not communicating, the listing agent is irritating, and my agent is frustrated, as am I and my family. There is really no way we will close by June 30, which is a very unreasonable deadline for short sales when everyone is trying to get in under the wire.
I have already written to my senators and my representative urging their support for the bill this will be attached to: The American Jobs and Tax Loopholes Act of 2010. Please do the same!
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Steven
June 13, 2010 @ 2:12 pm
Will there still be time for those who signed after April 30th or is the closing time just being extended?
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michelle
June 13, 2010 @ 9:09 pm
yes! we signed our contract before april 30 and need the credit to make it work so we can do the needed repairs on our shortsale home that the bank says they can’t give us an answer on until july 12. an extension would really help.
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Gregg Brent
June 13, 2010 @ 9:12 pm
Everyone PLEASE email your US senator to support this bill It’s only fair that people who signed contracts by April 30 won’t get the tax credit through no fault of their own.
I went into contract April 20 and still waiting for a closing date. The banks are moving very slowly. I have excellent credit and no problems that should be holding this up.
Also my attorney is now finding it hard to squeeze all the closings in that last two weeks of June.
PLEASE EXTEND. I counted on the $8,000 as part of the negotiation for sale.
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teresa
June 13, 2010 @ 9:26 pm
I had a contract for a forclosure owned by Bank of America that was signed by my real estate agent, Bank of America’s real estate agent and myself by Friday April 28. Unfortunately the processor or whatever the title of the final person at BofA to sign the papers did not sign till Monday May 3rd as April 28th fell on Friday and it being the weekend. She crossed out our april 28 dates and wrote May 3rd as final contract date. On a house keepers salary 19000/yr I needed the tax credit to fix up the forclsure as it was not move in condition so I cancelled that contract. They put it back on the market a week later with a reduction in price of $5000. I decided to go for the home again but the deal is bittersweet. Wished I had known they would do another extension on May 3rd I would have hung on.
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Alyce
June 14, 2010 @ 9:16 am
I signed a contract on a short sale home 11 Feb 10, the owner accepted my offer the same day, it is now 14 Jun 10 and I have yet to hear a response. The property has 2 liens, Bank of America and a unknown bank. I am a single mother and a Veteran that would like to have a real place for my childern to call HOME. The tax cerdit strategically positioned us in a better position to make our dream come true. Please pass the bill if for no other reason than to help those that have given so much to ensure the “American Dream” can be attained. The banks that accepted the bail-out money seen to be very reluctant to use it for the intended purpose. People are trying to salvage their credit and dignity by selling before foreclosure, HELP THEM! Loosen the purse strings and allow short sales to be sold! If more people are needed to keep up with the processing, new jobs have been created so hire more people…It’s not rocket science or maybe it is…
Hanging in the balance!
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Steve
June 14, 2010 @ 11:53 am
YES PLEASE!!!!
I am going CRAZY trying to organize all of the necessary paperwork from SONYMA and Genworth and the first time home buyer grants that I’m supposed to be achieving from my local municipalities!!! this three month extension would be a life saver because a MAJOR portion of my ability to purchase my home was dependant upon this $8000 credit. I absolutely need more than the next 15 days to close! please do everything possible to extend this!!!
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Lily
June 14, 2010 @ 2:53 pm
I agree everyone. I too met the April 30th deadline and am praying that I close by June 30th. I am buying a coop and we have reached a stalemate between the bank and the coop management company. Extending the closing deadline would be a blessing for everyone.
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Ryan
June 14, 2010 @ 5:03 pm
A lot of hard working honest americans who are trying to get into the market and close a home are stuck here. Banks have no urgency to approve short sales and drag the process long and far. Please extend and give us time so we, who were under contract on time, wont be hurt by banks who created this crisis still not doing their part.
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Tony
June 14, 2010 @ 5:14 pm
YES, PLEASE!
Our country should be able to help those who have signed their contract by April 30 to get their tax credit. It would be a shame if we fail this extension, considering what we have already done to help.
We assigned our contract in March, but we think the transaction can only be finished in July…., Oh, please!!!!!
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Mara
June 14, 2010 @ 5:32 pm
By all means extended the closing until 9/30/10. It just doesn’t seem right that as a buyer you do everything right but because the banks are so backed up the buyers would end up losing out. That just can’t happen, can it. Extend the date!!!!
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Anna Lee
June 14, 2010 @ 6:30 pm
It would be awesome if the government extends the $8,000 Tax Credit after June 30th, the deadline. I have some buyers that are building their homes and could really use this time!
With the banks holding up loans and doing what they call Quality Loan initiative, they are taking longer to close loans due to underwriting requirements and checking on the same day of closing to make sure that buyers have not changed their financial situation. While this is understandable, the extension will really help them. Also, some of my buyers applied for down payment assistance from the City of Houston and that program is on hold until the fall so perhaps this extension will allow my buyers to still qualify for the tax credit and close on their homes!
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Eric
June 14, 2010 @ 6:31 pm
I also agree, because I met the deadline but my bank will not allow us to close until a number of repairs are made on the home. With a full time job and there being a renter currently in there it will be difficult to get the necessary repairs done and the house closed in just 2 weeks.
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DJK
June 15, 2010 @ 3:43 am
same situation as many others…my contract was signed in early February 2010. there are 2 mortgages & banks involved and the 2nd bank, Bk of America is holding out for more money from the 1st bank, Wells Fargo. They are delaying the sale because Bk of America wants $5,000 more (I’m paying just over $300,000 for the home).
So delaying the sale for every penny and I could potentially be out of the $8,000 credit. This is actually hapopening very often.
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LAT
June 15, 2010 @ 10:01 am
Closing date extentsion is surely needed
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ALR
June 15, 2010 @ 1:05 pm
Closing date extension would help out two of my clients that are waiting for short sale approvals from BOA. Waiting since late February.
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pat
June 15, 2010 @ 1:07 pm
hello i am one of the ones that sign a contract on april the 9th 2010 and like me its not my fault the bank are holding my contract are not responding at all to the realtor and i need to close on the house i been waiting since april and i really want to mover i hpoe comgress due a extension thank you
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pc
June 15, 2010 @ 1:40 pm
I sign a contract in april also and the first bank approve me it the second bank that the hold up that will not respond the realtor have did everything and there is no answer there was a law in effect that on a short sale the bank can only hold a short sale for no more than 10 days and i been waiting till april i already i just need to close but by the 30th but like me and millions that are waiting on bank that do not respond so we can close we really need the extensions because i really want to purchase the home that i sign contract the government need to sending extract help to do the paper work so everyone can be close if they extension is granted i think the extension would be great for us who need to close by june 30th because with these short sale the wait is a very every long process and it is not us as the buyer it the banks that are dragging alone
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Kim C.
June 15, 2010 @ 2:35 pm
I have been under contract on my first home since April 22, 2010. At that time, I thought that I surely would close before June 30th. However, because of several delays (paperwork, repairs, etc.), I am now at risk of missing the June deadline. These circumstances are beyond my control. I believe that all buyers that met the April deadline should still be able to claim the tax credit. I will do whatever I can to help get this extension passed! Who should I contact? My local congressman?
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CAT
June 15, 2010 @ 3:27 pm
YES PLEASE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
We signed a contract on a short sale home on 12 April
, the owner accepted our offer the same day, and we are waiting for the bank’s approval since April, please do everything possible to extend this!!!
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Michel
June 15, 2010 @ 4:06 pm
I am a real estate agent w/ a buyer that has a executed contract dated 4/27 and is waiting an approval of a short sale. they would have closed in May had that been an option.
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Pammy
June 16, 2010 @ 9:49 am
I don’t know if the commentors have an email alert for this blog post, but if you do, I suggest writing a letter or email to your state’s legislative representatives. They will be voting on this amendment soon, and every little thing helps!
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LuisaInMiami, Fl
June 16, 2010 @ 12:10 pm
FEMA IS IN HIATUS…LOAN IS ON HOLD DUE TO FEMA HIATUS…IF THIS RESULTS IN NO TAX CREDIT…DEAL IS OFF. THAT SIMPLE.
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Karen
June 16, 2010 @ 2:39 pm
My son just forwarded an e-mail from his mortgage broker that the extension passed and has been extended to September 30th. Yipee!
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sreed
June 16, 2010 @ 3:59 pm
I hope they do extend it. I have been waiting for a bank response on a shortsale for MONTHS!!!! They had me sign an extension June 1 and did not get a response from them until after that date. Many large banks are processing all types of different loans, not just for homes. They are backed up tremendously and they need additional time to complete the process. Good thing I wasn’t trying to close on the property a year ago. I gave plenty of time to close on the property and have all of my ducks in a row. The banks don’t. I seem to think that there is a conspiracy in banks not closing in enough time for buyers to get the credit. Let’s see what happens!
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charles
June 16, 2010 @ 4:54 pm
i supposed few will say no to the credit or its extension because money doesn’t seem to be coming out of anyone’s pocket. it’s the federal gov’t. but isn’t that the same as tax money? tax collected from tax payers like you and me? spending your, and my money on ppl you and i don’t know? did anyone ask for your and my permission? why should i give away money to strangers? $8000 to be exact. i own a house. it suffered a great decline in value. fortunately i don’t have to sell it. but i’m not buying another one. what benefit do i get as a home owner? what credit do i get for giving away money to others? the tax credit is another irresponsible gov’t act to prop up the housing market. w/o the credit housing market’s going to tank further? if yes, that’s even better news for the buyers, isn’t it? if not, why are we giving money? we didn’t do that in 2006 when housing market peaked. we didn’t do that any time prior. exactly why are we giving away our money? to create jobs? that’s fine but why my money?! it’s ridiculous…
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1stTimeShaun
June 16, 2010 @ 6:40 pm
I put an offer in on a home on March 12th and the current owners signed it the following Monday (3/15) and was immediately forwarded to the bank. It is not officially 3 months later and after the sellers have jumped thru hoops to get the short sale approved, I still have no purchase contract. It’s discouraging that I will mis out even though I made the offer 1 1/2 months before the deadline. I am very happy for those who have already signed their contracts and are now getting the extension for their closings, but am frustrated that because the bank is taking it’s sweet time, that I missed out on the 4/30 signing date to get in the race.
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Kate lee
June 17, 2010 @ 10:15 am
Hi
I signed contract on march 15 th and I did every efforts to finish paperworks for the loan. Chase have so many loan application it took me 3 month to get a commitment with another long list of documents. I believe the dead line set currently now is unrealistic. Please, consider an extension for the people who met the contract dead line at least. So we can trust more of what governent doing are not to cut people out of good aid but help people o get an aid and make our economy better.
Thank you for your time.
Kate
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cheryl simone
June 17, 2010 @ 11:46 am
will be calling the politians today ….. pass it or no vote ….simple
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samira
June 18, 2010 @ 8:18 am
Please i need this extension i sing the contract already in april 20 and can’t closing until july and need this credit for help me to pay the clossing cost.this is really good proposal
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Karen
June 18, 2010 @ 8:57 am
Again, just in cse you missed it: From the Wall Street Journal
Wall Street Journal has reported that the extension passed in the Senate by an amendment 60-37:
Despite budget concerns, senators later approved an amendment 60-37 that would extend the time individuals have to qualify for a popular tax credit supporting home purchases. The credit is due to expire June 30. Under the amendment, pushed by Senate Majority Leader Harry Reid (D., Nev.), buyers would still have had to enter into purchase contracts by April 30 to qualify for the tax credit. But they would now be given until Sept. 30 to close the purchase.
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Michael Kraus
June 18, 2010 @ 8:59 am
Karen, that is not the case. Here is a link to the Washington Post Article:
http://www.washingtonpost.com/wp-dyn/content/article/2010/06/16/AR2010061603875.html
In it is says: “WASHINGTON — The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
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.
The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation’s highest foreclosure rate, and Reid is facing a tough re-election campaign.”
The proposal needs to go to the House of Representatives to become law. It has not yet been voted on.
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Karen
June 18, 2010 @ 9:39 am
Thank you for the update. Do you know when the House will vote on the proposal and then send it on to the Pres?
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Robert Halasz
June 18, 2010 @ 9:43 am
Yes, Running into lots of issues throughout the whole process. The extension would help me out very much.
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Michael Kraus
June 18, 2010 @ 9:43 am
I do not, I called Senator Reid’s office, and the person I spoke to confirmed it was going to the House but told me to call my representative. When I called my representative, the person I spoke to did not know when the House would vote upon the bill. According the House’s website they are not scheduled to meet today.
http://www.house.gov/house/floor/thisweek.htm
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karen
June 19, 2010 @ 3:29 pm
On Thursday, I sent e-mails to Senator Reid and to Michael Quigley, my representative. Maybe if everybody sent e-mails to their representative, they’ll act quickly. One way or another, people have to know what is going on.
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Varghese
June 20, 2010 @ 3:01 pm
Yes it is the need of the hour in our case we are also waiting some more things to be done before closing
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Karen
June 21, 2010 @ 10:06 am
Looks like House of Reps has already adjourned for the day. Maybe tomorrow.
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Michael Kraus Reply:
June 21st, 2010 at 10:21 am
I’ve been checking the House website pretty regularly, so as soon as I see something I will be sure to post here.
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Etta
June 21, 2010 @ 2:11 pm
I think the April 30th deadline should be extended. I was the victim of an agent who didn’t know what she was doing and it caused me the April 30th deadline. I think it’s easy for people who signed contracts prior to April 30th to say yes extend the closing date. But for people who signed contracts in May, it’s unfair to us. I’m sure anyone who signed a contract in May had a contract prior to April 30th and for whatever reason, the contract didn’t go through. It would be nice to extend the tax credit on both ends. Please be considerate of us who may lose the tax credits because of agents, banks, and other reasons.
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BUBBA
June 22, 2010 @ 11:26 am
HAS ANYONE HEARD ON THE OUTCOME YET FROM THE HOUSE OF REPS. BECAUSE IM NOT PURCHASING THE HOUSE IM SUPPOSED TO BUY IF I DONT HAVE CLOSING BY 6/30/10 OR THIS BILL DOESN’T GET PASSED.
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chuck
June 22, 2010 @ 5:20 pm
I hope it gets extended. I’m all set with my bank but have to wait for two banks who hold the note on the house. How is that fair to the buyer who is left waiting with no way speed up the process. i hope the senate can do the right thing and help the people who elected them.
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Quavo
June 23, 2010 @ 6:21 pm
I have been under contract since March and have had three extensions. I have done everything required of me and I’m scheduled to close on June 25th, but found out that it will not happen. I am at a point now that if I cant get the credit them I’m willing to walk. So if the government chooses to extend the credit it would be great for all parties, considering it is not the buyer’s fault that the banks are backed up. The purpose of the credit was to entice people to buy homes so if this incentitive is taken away then it totally defeats the purpose of rushing to have a contract in by April 30th.
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Kendall
June 25, 2010 @ 11:22 am
I am also one of the people wanting the tax credit to be extended. I found the home of my dreams and I have had a binding contract since April 2010. I signed into the contract because I was told by a bank that I was approved for the loan. My Realtor suggested a mortgage broker to use because I would not probably not close by 6/30/10 using that bank. I took the advice and then I was informed by credit score had to be a few points higher to be approved for that loan. I took all the necessary steps to improve my score so I could get the loan. I called the creditors and they stated they could not report right away and the credit bureau could not update the information any sooner. I am doing everything possible to make it happen. I really need the tax credit to be extended so I can do more for my daughter, as a single parent. When will the people know if it was approved?
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Genaro
June 25, 2010 @ 11:50 am
I happen to have quite few files of buyers buying due to the incentive and that were be very disappointged and probably will refuse to close the transaction if this additional time is not granted. The delays were due mostly to the banks not given the approval letters on time. And by dragging their feet. We need the approval of extension to everybody with a purshace contract by April 30th.
Thank you
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Genaro
June 25, 2010 @ 11:55 am
Due to the market situation where many of properties are short sale. An many have more than one loan, we have experienced unforseen delays. Just by protecting the spirit of this federal incentive, I proposed to have an extension of at least 3 months to be able to comply with many of these buyers that were compelled to buy due to the inventive. Only for those that had their purchased contract by April 30, 2010.
Bank have a huge back log and have very complicated requirements to approved short sales. An it is even worst when there are more than one loan on the property to be sold.
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KDO
June 25, 2010 @ 1:58 pm
We are one of those couples that have completed a contract by the April 30th deadline but won’t close by the June 30th deadline. We went into the contract with the preapproval letters from two lenders, not prequalified. We had done much research and had all of our ducks in a row, making sure we didn’t miss anything…all documents, etc. to lender BEFORE we went househunting. Now, we also will not close by the June 30th deadline. This is what gave us that push to invest in our future as a family. I do agree that the gov’t should only extend this to those of us that met the initial requirements of having a binding contract by the April 30th deadline. Please forward this so our Gov’t will hear us and work for us! We are stimulating the economy through our purchases!
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jason
June 25, 2010 @ 7:21 pm
We put offer in february. we’ve got bank approval letter last week.there is no way we can close escrow by end of Jun30. hopefully this bill pass.
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Jeff H
June 25, 2010 @ 10:07 pm
My wife and I signed a contract on the April 30th deadline and are now not likely to get the tax credit because we have spent three weeks trying to track down a piece of paperwork for FHA that doesn’t exist. So it isn’t because of the seller, the buyer, the realtor, or the mortgage company that will lose this deal, but FHA, another government agency who is supposed to be trying to turn around the decline in the housing market. I hope that they extend the deadline for closing, because otherwise we will probably lose the deal and have to continue renting.
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Russ Bouknight
June 25, 2010 @ 10:21 pm
I am a realtor and very active in the poltical process, I have three clients who went under contract well before the 30 th of April on the first time buyers program. They are short sales with Bank of America (definitely helped by TARP Funds) We are very close to yes but rapidly running out of time. I want to say to my congress, americans are stepping up to the plate to buy houses in these uncertain times and every short sale they buy prevents another family from having a foreclosure. Please for the good of all quit fighting pass this extension and resotre some faith in our government and financial institutions. thank you, I vote and I remember. thank you Russ Bouknight Kansas City Missouri
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Danielle
June 25, 2010 @ 10:51 pm
I think that the whole program should extend through the end of the year. I missed the April 30 deadline by one week. That was of course my own fault. It would be nice to have the 8 grand in my pocket. EXTEND THE WHOLE PROGRAM!!!If the incentive is working, why get rid of it?
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Orlando
June 26, 2010 @ 4:14 am
Estoy tambien esperando cerrar antes del 30 de junio; pero una u otra cosa demora el cierre, por lo que una extención se hace imprescindible.
Gracias
Orlando
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Orlando
June 26, 2010 @ 4:16 am
I am also waiting to close before June 30 but one thing or another delayed the closure, so that an extension is essential.
Thanks
Orlando
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Alan Adams
June 26, 2010 @ 7:38 am
An extension would be great. I have a buyer that has been under contract since April 29th and is having trouble securing financing. First they were going for a USDA loan and now is trying for FHA. From the sound of it, they may not be able to close by the 30th of June.
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Donna
June 26, 2010 @ 11:43 am
I am a first time homebuyer, unfortunately, It’s June 24, 2010 and I just begain paperwork for a mortgage. I would love to see the June 30, 2010 extended so that I can partake on this tax credit. This will be a great way to stimulate the economy because I would use this money to buy a washer and dryer. I’ll keep my figures cross and pray.
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PDR
June 26, 2010 @ 8:37 pm
I am under contract with Freddie Mac as the seller, I hope they do give an extension until September, because my package is only waiting on 1 thing. Also, I hope they are lenient, because I/buyer signed on April 26, but seller/Freddie Mac dragged their feet and signed on 5/11, (and I have email proof of acceptance and date)…I hope this does not hurt the situation of me receiving my tax credit. My accountant said, it’s when the buyer signs, (but she’s not too sure), I was also told that since the seller is another government agency and it was because of them, that it should pass. And besides the whole purpose for this is to encourage homebuying… well I was encouraged and you dragged your feet!….Praying, … Please extend!
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Maxine
June 27, 2010 @ 3:11 pm
My son is a firsttime homebuyer who got into contract 3/10/10 on a HUD purchase contract for a FHA mortgage. We never dreamed that 6/27/10, he’d still be in limbo awaiting action from the third lender! He’s already had to pay for 4 HUD contract extensions though the delays are with the lenders, not him. Wells Fargo, then B of A decided he was too much a risk to them with his high credit score but not enough credit history (he’s 24). The third lender just drags their feet, not responding to calls, we were supposed to close 6/17, then they decided they did not want to give a 30 yr loan,only a 20. Every day it’s another change and another delay and now the 6/30 deadline will be in the past and another $375 extension for HUD looms ahead. The extension of the 6/30 closing deadline would be a godsend for those in contract by 4/30! The lenders made this whole mortgage crisis in the first place, and they are abusing their power again by delaying closings at will. the 1st time buyer should not have to suffer. The tax credit incentive was meant for them….they shouldn’t lose it through no fault of their own. Please forward to Congress.
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Terry
June 28, 2010 @ 10:06 am
I work for a small builder doing a rehab project and 3 of my 4 buyers are first time home buyers who all have their mortgages in good standing and are ready to close but due to village red tape in the building process closings are not going to happen for another 30 to 60 days. All these buyers bought with good faith they were going to get this credit. Please get this passed.
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gabriel
June 28, 2010 @ 12:32 pm
I invite everybody to take a look at this link
http://www.opencongress.org/vote/2010/s/200
In this link you will find the representatives that voted no for the proposal.
All of them Republicans. Please contact your representative and urge them to vote for the extension.
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Brittany
June 28, 2010 @ 2:40 pm
hi,
please let it be longer my sister-in-law is trying to get there new home and it has been raining so much they cant get the basement in…please let the deadline be extended out, it would make everything so much better.thank you
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Madison
June 28, 2010 @ 2:46 pm
thank you gabriel for the link above. I will take the time to contact each of these reps to let them know my situation. This has been the most horrific experience of mylife and I lost my house I was renting to a house fire! I can’t explain how this has been and I’m sure I’m not the only one losing sleep right now because I was told i would not close by the 30th by my lender. I am out of extra words for the situation. All I have is truth and the truth is I would not be purchasing a home right now with out this incentive. I think I might back out of the deal if I can’t recieve this credit. Its needed…
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Matt
June 28, 2010 @ 3:52 pm
Ive been in escrow since January 15th and to miss the date of june 30th by a couple days is rediculous! Long story short, one week into escrow which happens to be a short sale the seller died. So I had to wait for probate which took 3 months! Finally the title is able to be legally transfered 2 weeks ago and I find out everyone is so back logged by everyone rushing to meet the deadline to get the tax credit, I missing the deadline by 2 days! Im not a happy camper! Im not a rich person, the house is a small 500sqft pos and I needed the credit to fix the house. Oh well, if I didnt have bad luck, I wouldnt have any luck at all!
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Cindy
June 29, 2010 @ 9:20 am
The process started months ago and then to find out that we may miss out on the tax credit. It will be so helpful to receive this. Please extend !!!!! We are not wealthy by any means and this will make such a
difference.
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Nini
June 29, 2010 @ 9:54 am
They NEED to extend the credit so for everyone that has put on a contract by 4/30 will have enought time to close!! Because of the number of short sales it hard to close a loan, everything takes time. Im sure allot of buyer are counting on this money to do repairs to the home..Please please extend this credit the middle class deserves a chance
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Monique
June 29, 2010 @ 9:56 am
For everyone who has followed the rules of having a signed contract by April 30th, 2010 should not be punished for the banks issues or any other issue out if there control!!! This is truly unfair and this have been a horrible experience for me as a first time homebuyer. I am a single parent with a special needs child. I have been extremely stressed for weeks now due to this issue. I need to money to pay for therapy for my daughter that can’t get any assistance, bc I supposedly make too much. I wish I made 6 figures then I would not stress about it. I am doing this all alone and it has been extremely difficult and because I can’t get my loan closed although I signed my contract April 19th you are going to penalize me.. This is unfair and unjust!!
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Angela
June 29, 2010 @ 11:00 am
Extending the time to September will be a great benefit to myself as well as to many others who have met the first qualifiation of being in a binding contract before April 30th. Anyone that has ever bought a house knows that it takes time and things may come up that are beyond the buyers control. And if you have a lot of people trying to do the same thing in an effort to beat a deadline it can make things even more nerve wrecking. What I am trying to say is the credit would be a GREAT benefit not only for myself but for all the others whether they plan to use the money for repairs, furniture or just get a jump on their mortgage I feel that if one has met the 1st qualification they should be allowed an extension in efforts to get the credit.
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Kayla Wadding
June 29, 2010 @ 4:29 pm
I am also in this mess as many of you are. I was under contract April 25th, my loan is ready to go and all we are waiting on is for the government to approve funding for Rural developement loans. I am not waiting on a bank, I am waiting on the government. So yes I hope and pray they will extend it because it is their fault that I won’t meet the June 30th deadline!
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BUBBA
June 30, 2010 @ 6:43 am
I was one of the lucky ones. I had my closing 6/29/10 thanks to my broker Mike from Territory Mortgage Inc. out of Utica,New York. I started my loan on 4/30/10 and was able to get closing done in time to get the $8000 credit.I really hope they still pass the extension for you people out there who are getting robbed from this deal but for me “the goverment can kiss my —” because I will be sending my credit in and collecting my money.
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Rosie
June 30, 2010 @ 12:02 pm
I am 2 days from closing…and now what im basicly screwed!!! This has been a process since february 5 whole months..we need the extention!!!
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Cindy
July 1, 2010 @ 5:35 am
My friend is the seller of a home that the buyer is expecting the first time home buyers tax credit, her financing on her new home fell through 12 days before closing even though she had a “pre-approval” letter from her bank. Now the buyer is suing her for the credit, apprasial and inspection fees. It may cost her almost $10,000! Has anyone else heard of this?
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Margaret
July 1, 2010 @ 6:55 am
My daughter & fiance went for the closing yesterday to hit the deadline & the attorney informed them while sitting in his office to sign all papers, that the mortgage company had not sent in papers & only communication with Wells Fargo is by email & that there was no way to close today! It’s do or die at this point & they are screwed on the tax credit because of an idiot attorney that didn’t have all the paperwork for the closing laid out in front of him! My opinion, he should be responsible!
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eric
September 28, 2010 @ 11:51 pm
My wife and were under contract 3/3/10 with a house listed as a short sale with a 45 day closing. the first tax credit came and went because the bank took so long to accept our offer. After it expired we wanted to look at other houses but wrer told if we choose a different listing we would not get the tax credit if it was extended because we would not meet the under contract for that home by april 30th. so we stuck with this house, they extended the credit to sep 30th so all looks good. 5 days from closing/credit deadling the A/C, washer/ dried/ microwave was stolen because one of the realitors or inspectors failed to lock the garage door when the left. the sellers realitor made an appointment for the VA inspector to reinspect wednesday sep29 at 4:30 and for the new A/C to be installed sep 29 at 4:30. my morgage broker just called me (48 hrs to closing and tax credit deadline) and informed me that this deal isnt going to happen in time. because the sellers realitor has no authority to order an inspection. if my morgagge broker was told last week she could have had the paper work ammended and got the ok to close with the items that need to be replaced in the contract but since she found out today the inspector has to be paid which all of the paper work has to go through full disclosure again. by the time the time the inspector comes out on sep 30th at 4:30 the under writers at the bank will be gone for the day and there is no way to get all of that paper wotk done and close the same day. so I dont get my $8000 even though I was under contract since March but I’m sure the realitors and morgage brokers want their comissions. thanks guys screwed again…….
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