Congress passed the extension of the tax credit for first time home buyers and for buyers who have been in their homes for 5 years or more, and are buying anew.
Originally, one needed to be under contract to buy a home by the past April 30, and close yesterday, June 30, in order to receive the tax credit. This law extends the deadline to close until September 30, and still receive the tax credit.
That is helpful for folks who wrote contracts to buy a short sale home, especially. Short sales often take several months from contract to close due to waiting on the banks to approve the short sale, so this is good news for those buyers.
The law has not been signed by the President, but is expected to be shortly.
And, just to diffuse any confusion – this law does not extend the tax credit to new buyers who are just now putting contracts on homes. There has been some talk of the potential to reinstate the tax credit; but so far that is only talk with no action behind it.
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