Congress Considers Extending Home Buyer Tax Credit Deadlines

According to an article today in the Wall Street Journal, Congress is now considering an extension to tax credit deadlines for home buyers which were set to expire on June 30. Before you get too excited, the proposed extension only applies to home buyers who were under contract to purchase a home by the April 30, 2010 deadline and would give them until September 30 to get their transaction closed. The measure was brought up because of concerns about overloaded lenders who are unable to fund all of the loans due to close by June 30. It would also serve as a mechanism for buyers waiting on lengthy short sale transactions to secure the tax credit.

This is potentially good news for home buyers who were at risk of losing their tax credit because of unanticipated closing delays. However, this is simply under discussion in the Senate at the moment. It would require passage by the Senate, House and the President before it becomes law, so who knows exactly how things will play out. However, if you are at risk with your home buyer tax credit, keep an eye on news from Washington to see if this proposed measure becomes law.

UPDATE – June 28, 2010 – The bill containing the tax credit extension has been shelved in the Senate.

UPDATE – June 29, 2010 – The House of Representatives has re-introduced and passed a standalone bill to extend the tax credit deadlines.