Tax Credits May See Extension: The home buyer's tax credit has been wildly popular. It gave both first time and previous home buyers a sizeable tax credit provided that they sign a purchase contract no later than the end of April and close no later than the end of June.
It was so successful, that pending home sales (contracts signed but not yet closed) rose 22.4% when compared to April 2009. However, with increased underwriting turn times, many people that met the requirement by signing a contract before the end of April will not be able to close in time. Under the current law, they would lose their tax credit.
Senator Harry Reid is offering an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 that would extend the closing time from June 30th to September 30th. Note: If you did not sign a contract by April 30th then there is no extension for you. It is only for those that signed a contract in time but just can't close on time. It remains to be seen if his proposal will pass, I will keep you posted.