Real Estate in Northeast Florida and Around the World

You may have heard that Congress may be extended the Home Buyer Tax Credit, which expires today.  As always, the reader needs to be disciplined to read more than the headline.

On Tuesday, the House of Representives passed a bill which includes extending the tax credit closing period, allowing buyers who were under contract by April 30, 2010 to close as late as September 30, 2010.  What this will allow is for those buyers who are trying to close on a short sale transaction more time to get their transaction closed, although there are other types of transactions that will also benefit.

Because short sale transactions involve the lender approving accepting a short payoff, the amount of time to gain approval of the terms can be very lengthy, in some cases up to six months after the seller's accepts the terms of the offer.  While HAFA (Home Affordable Foreclosure Alternatives) sets out guidelines that buyers and servicers must follow, thus helping to standardize the process and reduce the processing time, it is still a lengthy process. 

So, if you are waiting to buy a home thinking that Congress will extend the tax credit, understand fully what you are waiting for - it does not appear that Congress will extend the overall program to allow new buyers to participate, only to give more time to those that were under contract by April 30, 2010.

For more information on the tax credit, please visit my page by clicking on the menu item to the left.  If there is other information that I can provide, do not hesitate to contact me by email (MissiHowell@MissiHowell.com) or telephone, 904-716-1713, or just stop me next time you see me around the neighborhood!