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June 29, 2010

House takes up home buyer tax credit extension

The deadline extension for the home buyer tax credit might not be dead after all.

Several members of Congress -- including U.S. Rep. Frank Kratovil of Maryland -- introduced a bill in the House today to give buyers three more months to close on deals struck by April 30. The current deadline is tomorrow night.

Lucien Salvant, a spokesman for the National Association of Realtors, said the proposed Homebuyers Assistance and Improvement Act seems to have "a good chance of passing" in the House and he's hopeful it will happen today. The Senate could take it up tomorrow, he said.

The Senate, if you'll recall, supported an amendment to extend the closing deadline to Sept. 30 but attached it to a bill with a lot of other measures that did not have broad support. That bill died last week. This House version only extends the tax credit closing deadline and does nothing else, Salvant said.

This week the Realtors group estimated the number of deals that aren't going to close in time for the June 30 deadline. It's still going with up to 180,000 nationally but also broke it down by state. Buyers in Maryland, it said, would miss the deadline on about 2,630 sales. 

UPDATE at 5 p.m.: The House voted in favor of the bill this afternoon. The National Association of Realtors says it's on the way to the Senate now.

Posted by Jamie Smith Hopkins at 3:33 PM | | Comments (8)
Categories: First-time buyer tax credit
        

Comments

I am a realtor and we need to get these short sales off the inventory.
This tax credit has made many of these purchases possible. Without it we will loose many of these sales. That has an economic impact on everyone but worse yet vacant homes are a serious concern to NEIGHBORHOOD SAFETY.

Many people are counting on the tax credit. It would be a shame for citizens to loose the credit because of a log jam with the mortgage companies.

Lot of buyers in DC area are at the mercy of the Bank of america to buy there short sales..Why did the congress did not give any deadlines to Bank of America..saying you need to close all the home applications for contracts signed by April 30th to be closed by June 30th. Why are the punishing the buyers, whom the congress gave false hopes to start with for owning a home, we poor suckers had to spent 1000's of dollars for inspections,appraisals,credit statements etc.. High time..they do something to handle this situation.

Awful news but not unexpected. Vote the bums out in November.

I just opened a the print version of the SUN for the first time in months. The amount of Auction notices for secondary trustees(foreclosures) is pages and pages!

This tax credit was great for the barely scraping by but anyone(couple) making 100k should not be paying more than 300-350k) for a house and that income is not eligible for the credit.

Frankly all the realtors shouting this to the roof should know better. But with them starving due to the amount of folks who entered the industry when it was in "order taking" mode you can't be shocked.

Over 1 million tax returns are now being audited by the IRS because they thought they were getting a credit and make a higher income than the credit allows.

It now takes over 18 months for a house in baltimore to go from walk away to back on sale. The shadow inventory around here will be around for another 5 years. Expect prices to be lower 5 years from now then today.

As for this project, it was good to get price discovery. This is something that only got built because of dumb pension fund holders here and in other countries buying up all the mortgage paper they could find in the pursuit of yield to pay over promised pension obligations.(Another topic but all this is related).

It also shows a lot of houses up farther in Federal Hill are still way overpriced in wishing priceland and likely underwater.

I am a REALTOR in Hunterdon County New Jersey. The buyer of one of my listings had a mortgage commitment due May 30th, we are still waiting.

This is a traditional sale (not a short-sale), but Bank of America is overwhelmed. Everyone is prepared to close the property tomorrow to ensure the buyer can receive his tax credit - but here we sit :-(

Given 406-5 house approval, Senate approval should be a formality so yet another home buyer credit extension is now approved.

To marybubbleland - I don't necessarilly disagree with your position, but incorrect facts lead credibility issues... the income limit you stated was way off. From the govt's own website; "The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return." Even beyond that, they can qualify for a reduced tax credit up to $145,000 (single) or $245,000 (married).

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About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
Baltimore Sun articles by Jamie
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