The push by the National Association of Realtors® (NAR) to extend the deadline for closing qualified purchases under the widely popular tax rebate program took a big step forward yesterday, when the Senate voted 60-37 to push the deadline  back to September 30, 2010.

The original bill was designed to stimulate the housing market by providing an $8,000 tax credit to 1st-time home buyers and a $6,500 tax credit to repeat buyers who entered into contracts by April 30, 2010, provided that the sales closed by no later than June 30, 2010. By most accounts the bill was a success, as home sales improved significantly in the first part of the year. However, NAR reports that nearly a third of the qualifying transactions were not likely to close by the original by the June 30th deadline, due overwhelmed lenders being unable to handle the surge in mortgage loan applications.

The amendment does not extend the deadline for purchasing a home, only the deadline for closing the transaction. If it becomes law, buyers who made qualified purchases by the April 30th deadline will have 90 days additional time to close, which will insure that most home buyers who acted to take advantage of the program will be able to receive the intended tax credit. Further, according to a statement by NAR President Vicki Cox Golder, "Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs."

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com