As many as 18,000 California homebuyers … of the about 180,000 in the U.S. … got good news about deadline to close escrow will be extended.
Otherwise, they would have lost out on a federal tax credit of up to $8,000.
Many of the California homebuyers also now have a chance to piggyback the US income tax credit with up to $10,000 off the CA state income tax credit.
The National Association of Realtors® confirmed that US Congress passed two bills to extend the home buyer tax credit closing deadline and reauthorize the National Flood Insurance Program. Both bills, strongly supported by National Association of Realtors®, have cleared the House and by the Senate and now heading for expected President’s signature.
The homebuyer income tax credit closing deadline will be extended from June 30 to September 30, 2010, and this is expected to help provide additional stability to real estate markets.
“What a great way to begin celebrating our nation’s most patriotic holiday by opening the door to the American dream of homeownership to thousands of home buyers who would have been shut out of the homes of their dreams through no fault of their own,” said National Association of Realtors®, President Vicki Cox Golder. “We know that up to 180,000 home buyers eligible for the tax credit are rejoicing this morning. And we all thank both houses of Congress for their work to ensure passage of both bills,” Golder said.
The passage of H.R. 5623, the Homebuyer Assistance and Improvement Act, applies the homebuyer tax credit closing deadline extension only to homebuyers who have ratified contracts in place as of April 30, 2010, but could not close before June 30.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
Source: National Association of Realtors®
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Harrison K. Long
Explore Group Properties, Coldwell Banker Previews