Sue Fox, @Properties. Direct 773.816.1788
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Real Estate radio
The Senate has approved a proposal that would give home buyers trying to claim the $8,000 tax credit an extra three months to close on their purchases, provided they have already met the April 30 deadline to get their home under contract.
Basically this would help clear the huge backlog of people who are all desperately trying to close their deals by June 30 in order to qualify for the tax credit, as the law now requires. Real estate deals often don’t close on time — they can be delayed by problems with the appraisal, lengthy turn-around times in lender underwriting or other wrinkles in the loan process — and right now many lenders are backed up with a swell of loans that all need to close in the next two weeks. I have one Chicago buyer who has been practically doing back-flips to get his loan approved in time, but when we asked the lender yesterday whether it would close by June 30, she said bluntly, “I have no idea.”
To take the pressure off, the Senate voted 60-37 yesterday to extend the closing deadline to Sept. 30, 2010. The extension would also apply to “move-up” buyers trying to claim a $6,500 tax credit for purchasing a home they intend to live in.
The new deadline would help an estimated 180,000 home buyers now racing the clock to close on time, several thousand of whom undoubtedly live in the Chicago area.
But the extension, if approved by Congress and the president, will only apply to people already in the home-buying pipeline. To qualify for the tax credit, you must have already signed the contract to buy your home on or before April 30.
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