[quote]Home buyers hoping to take advantage of a lucrative federal tax credit would get three extra months to complete their purchases under a proposal introduced in the Senate on Thursday. Senate Majority Leader Harry M. Reid (D-Nev.) co-authored a proposal that would allow those eligible for the tax credit to close on a home by Sept. 30 to give lenders more time to process a crush of applications. Reid and his co-sponsors hope to attach the measure to a separate bill moving through the Senate that would extend a variety of tax breaks as well as emergency unemployment benefits. But even if senators succeed in attaching the tax-credit initiative, Democrats are still struggling to assemble the votes needed to pass the overall tax bill. To qualify for the tax credit -- $8,000 for some first-time buyers and $6,500 for certain current homeowners -- buyers must have signed a contract by April 30 and close on the their transactions by June 30. The National Association of Realtors said many home buyers will not be able to meet the June 30 closing deadline because of the surge in loan volume and delays related to home appraisals and short sales, transactions in which lenders allow struggling homeowners to sell their homes for less than they owe on them. [/quote] [url=http://www.washingtonpost.com/wp-dyn/content/article/2010/06/10/AR2010061005434.html]washingtonpost.com[/url] There are no assurances this gets passed, and it wouldn't really impact much, since it only effects contracts signed before april 30th. But for those rushing trying to get that 8K or 6.5K rebate, it might help. Personally I think over the long term additional losses on the value of the property in most areas (especially SoWal) will exceed the credit.
