Paul's Bellingham Blog

My thoughts on Bellingham, the Real Estate market, and more

Senate Passes Extension for Tax Credit deadline for Pending Deals

No Comments »

Update 7/1/2010 -Obama has passed into law the extension, so it is official!

For those that entered into a purchase and sale in April, and still have not closed, all of that stress about the looming deadline may not be needed.. The Senate has just gave you more breathing room to qualify for the $8,000 tax credit. The deadline has been pushed back 3 months, from the end of June, until the end of September.

This still needs to go through the house and then approved by the President, but I can’t see a reason why this won’t go through. The Senate passed it with an overwhelming majority, and we need it!

This is potentially great news, since the National Association of Realtors estimates that nearly 1/3rd of the buyers trying to close by the end of June will not close on time. I have clients buying homesand condos in Bellingham that are trying to close later this month as well, and lenders have been totally behind all year long. So safe to say it would have been a disaster if 150,000 to 200,000 would-be buyers lost out on the $8,000 credit because there loan got delayed beyond there control. Bottom line is this was a necessary bill and will definitely cover everyone that had got an offer in by the end of April.

Keep in mind this would not extend the credit for new offers-only existing pending contracts.