On June 16, the Senate approved a plan to give home buyers an extra three months to finish qualifying for federal tax incentives. If the plan passes, it means you’ll have until September 30, 2010, to close on your Brooklyn home and qualify for tax credits of up to $8,000. (First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.)
Originally, you had to sign a contract to purchase a home by April 30, 2010, and close no later than June 30, 2010. With this extension, anyone who had a signed purchase agreement by April 30 would have until September 30 to close on the sale of that home.
Why the Extension?
Mortgage lenders have been swamped with borrowers trying to get their Brooklyn home purchases approved by June 30. Many potential borrowers are having difficulty meeting that deadline.
The National Association of REALTORS® (NAR) estimates that 180,000 buyers are likely to miss the June 30 deadline “because of delays in the process.” That’s particularly true of short sales, the NAR noted.
Is it Approved?
Unfortunately, an extension of the deadline for the federal homebuyer tax credit remains tied to Senate legislation that would extend unemployment benefits, complicating efforts to get the deadline extended before the expiration date of June 30.
But don’t give up hope. If lawmakers extend the deadline after June 30, the language in both the House and Senate bills will apply retroactively.
Have questions about the federal tax credits? Or any other questions about Brooklyn homes? Give me a call today at (718)253-9600 ext.206 or email me at [email protected] I’ll respond promptly and personally.
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