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June 30, 2010

Update on home buyer tax credit extension

Here's how the Senate is planning on extending the home buyer tax credit -- by combining it with a bill to extend unemployment insurance. As the Associated Press notes, "The homebuyer tax credit is a much easier sell."

More here and here.

Posted by Jamie Smith Hopkins at 10:45 AM | | Comments (23)
Categories: First-time buyer tax credit


NOT AGAIN! They tried to pass it with the unemployment before and it didn't pass....why can't they leave it as a separate bill! THE SENATE IS FULL OF MORONS.

The extension is very helpful for people like me caught up in a short sale that is backed up by unusually long bank processing time. There are an estimated 180,000 people like me who played by the rules and are held up. How is a measure to give me enough time to close on a home (which adds nothing more to our ballooning deficit) a bad thing?

Gabriel wasn't saying it was a bad thing. He was just saying that combining it with the unemployment bill caused it to fail before, which it did. As a beneficiary of the tax credit, I need the extension to pass. I could care less if it passes with the unemployment bill or not; but if being attached to the unemployment bill causes it to fail again, then someone owes me 10%!


First, you are right. WTF! Leave it alone now as a stand alone.

Still, remember that IF the unemployment bill fails yet again, the Senate still has the stand alone to pass for our needs.

Reid is walk a fine line of support from us to playing politics to our demise....And his support from me as well

Leave it to the government to combine two totally different things on one bill. Lets feed the unemployed morons for another 6 months. Why don't they just get a job like the rest of us? I am sick of paying for people to be unemployed!

Vote to extend the tax credit on BOTH of these polls! And PLEASE forward to others!

Hi, all -- please remember there is a no-name-calling rule on this blog. I understand your frustration, but keep the conversation collegial.

I don't have enough ready computer access this week to contact individual commenters, so fair warning: If your comment has name-calling from here on out, it won't get put up.

Thanks, all, for helping to keep this blog a nice place to gather.

Right on Gabriel!! I thought the same thing. Let it stand on its own. Changes of passing both together is slim, it as failed already! Plus there was overwhelming support in the house as a stand alone. GEEZ!!

I don't understand why the Senate keeps trying to attach toe unemployment bill which the Republicans have said repeatedly the will not vote for unless it is at least partially funded with another bill that would meet no opposition. It seems to me that they should leave each as a standalone bill.

Both of tjese are subsidies that need to be done away with. Hopefully, combining them dooms both to failure. I am skeptical, however, that our government has finally seen the foolishness of the nanny state.

Thanks for the links, mark. I have contacted my elected officials and demanded that they vote down these pathetic measures - and I have forwarded the links to my entire e-mail list asking others to do the same. The crowd I hang out with hates handouts.

I am one of the unlucky one who can't close on time because of the back log. I am maybe partial on this but looking at the whole picture, I think this is good enough reason for me not to vote Harry Reid back on the senate... but I am not from NV so... He is manipulating first time buyer for his own benefit, because his chance of re-election rather hangs on the un-employment bill that is a failure (3x rejections) so he is using this popular extension to first time homebuyers to force Republican to support the un-employment bill.... I think that's a very selfish Senator....

While I agree that the UC and buyers credit are very separate issues, I feel for the uninformed out there aka KATHY, who think anyone can just go get a job in this economy. I personally have NEVER not had a job since the age of 13. I am now 43 and just found myself out of job where I was making six digits. I would take a job at minimum wage but I am over-qualified even after erasing half my resume. BTW-dear Kathy-YOU are not paying for me to be out of work-I have paid my taxes every year and might I add-at a much higher rate than you.

Sorry I do have to do some name calling. The first home we were ready to by, the owner decided not to sell at the 11th hour so we thought we lost the tax credit. After that we found a co-op and played by all the rules, all the paper work that the bank and other trickled requested from us day in and day out and we felt such stress hoping to make it in time. A week before the closing the bank told us they want the management office to increase the insurance. Everybody knows how long something like this will take and we knew then we won’t make it in time. Something is wrong with this system when a couple want to by a co-op and four (4) layers are involved. How many lawyers does it take to screw in a light bulb? But I am digressing. Every time we took money out or put into our account the banks wanted us to send them another bank statement which then needs to be reviewed and thus delaying the approval. Think about it. At first the banks where banging us in the butt and now they are actually making it harder to get a loan, that is a loan with money they received from our tax dollars so in a word, they are now banging us in the rear with our own privates. So the senate should take that into account when deciding to extend the closing deadline and finally, do something about these banks, it is so out of control. First they make loans they know are out of a bowers budget and then they make it hard to get loans with money they received from the very same type of people they are loaning it to.

I think the comment that David B made was out of line, people are unemployed for different reasons, some have been layed off and the job market is not that good right now. Those same people have paid into the unemploment system and its only right an fair that they get the help they need. I too need this extention to pass but i also want others to be able to take care of there household. Don't be so judgementa,l im sure they do want to work they had to have had a job previously to even be able to collect benifits in the first place

Harry, there was a backlog a year ago and it sounds like it's only gotten worse. The government could help us all out by coming down hard on the way banks handle short sales and REO properties. Many of these stalled sales probably won't close anyway. It won't stop people from freaking out. There really should be some sort of timeline and deadlines established for the purchasing process, not the ridiculous circus show of ever increasing delays and excuses from the banks.

This hypocratic Reid is holding homebuyer hostage!!!!!
He was the first one talked all day long about home buyer and house market. But looked at what he did, he called for three voting already without getting anything done. While in the house, not much talking, one clean bill introduced and passed with 400-5! That proves how senseless not to extend it.
But every time Reid tries to attach something totally unrelated to this bill, and delayed the passing after the actual deadline,

I too am caught up in the midst of a short sale. I have been under contract since March and still not have not had a set closing date. It is not due to my end but because the banks approval of the short sale is taking so long! We have had initial approval by the primary lender of the sellers but not yet the secondary. The sellers have two mortgages which means two approvals. Now because things are so backed up who knows where we stand on the list. Its not our fault as buyers that this is happening. Purchasing a standard sales would have landed us closed and moved in by late May but because its a "short sale" we are leisurely crawling through the summer waiting for a date. As a first time homebuyer, I sure could use the extra money to renovate and update. I feel that because I met the contract date, I should be able to utilize the credit. It is not justified taking that away from us if it because the banks are so inundated with sales. If I knew how awful this whole process has been, I wouldn't even have opted to put an offer in on a short sale. Never again....

I have very little concern about the first time homebuyer tax credit - you all are blessed to have jobs that afford the luxary of becomming a homeowner - my concerns are for the millions of Americans who are unemployed and cant feed their family, pay the utility bills, keep a roof over their head - I hope our government pulls their head out of their @&$^ and finds a way to get this bill passed.

Dear Niece, I didn't make the comment you believe was out of line. Look close; someone made the offensive comment

I am going to add something here. There's been quite a bit of rumblings here about both unemployment as well as the tax credit extension (which I am looking for). This a.m. I was pissed off by Reid locking in again the TCE to the unemployment bill. But now, I think it makes sense. The TCE is popular and the unemployment extensions aren't (failed three times now). This is his only and dare say last way to get his sponsered bill to pass. Yes...he's using the much smaller perk of TCE to push this thing though. BUT...remember. For those folks who are waiting for TCE, there's the stand alone bill passed by the House yest. Thus, these folks will get TWO shots at this. Wording is retro in the it doesn't matter when it's voted now.

Lastly, personally I think Reid just make a tactical mistake. The Repub. Senators will vote down unemployement now even more agressively....and sadly, pass the TCE stand-alone as an "guilt vechile" to the people. They'll say... "see we do care about helping people in need. We passed the TCE"

Frankly, the 8k is important to me. But I don't have a family nor am I currently unemployed. I don't need the credit in the sense of survival. For those who are unemployed and truly NEED it, my concern is for them. Would I trade out the loss of my 8k in favor of knowing it would help keeping someone fed and alive in the most basic sense? Probably.

Look at it this way. For those worried about loosing the TCE and/or your house purchase..would you kill yourself over it? Think about it. Because few of unemployed likely will if and when they can't get any further support.

You know with all the pressures we are under and seeing more foregivenees debt to AIG and BP oil not excepting help from anyone. The list can go on.
At what piont do the American people get sick and tierd of being sick and tierd. We have a lot more problems than the Tax credit but Congress could not help themselves from making it another presser piont we have to worry about. Can nothing be done in a logical way anymore. Its all about who makes more money, And not enough money But More and More. Congress is not working for a better America. No way. They must all be looking at owning a Island in the Caymans. They don't keep there money here any way. Another Mess. Just approve the Extension how hard is that.

I am blessed to have a job because I paid (and will continue to pay for the next 15 years) for a good education. The government barely helped when I needed money to pay for college so I took the initiative to do it myself. I have a good job in a field where the job outlook is GREAT, thus is why I went the route I did. I am not worried that my job will ever be on the line because of the economical state of the nation. That doesn't mean I shouldn't be able to get my 8,000 tax credit. I work hard work to pay for my education that landed me this wonderful job. I can't help that the banks are so back-logged that they can't handle this all in a timely manner. Yes, I feel like I deserve it. I worked hard to get this house. The government hasn't helped me out yet, where else are they going to? I'm paying into a social security that I'll most likely never see....I couldn't claim the almost 10k in student loan interest I paid last year. Why? Because I made $132 more then the max income to claim student loans....Why get educated then? Why try to further yourself? Why try to succeed? If the government wants to hand out money to those that "contribute" to ole Uncle Sam every paycheck then let them.

I have been under contract on a foreclosure home (Fannie Mae) and was told I was closing on June 1st. Then loan people needed more time so they extended to close on
June 21st. Then appraiser said home needed repairs of $650, then loan people needed more time as seller (Fannie Mae) needed to fix these items. Now extended to June 30th. Then appriaser revisted (more$ as well) said all repairs were met on June 26th, but now needed an extra patch on the exterior wall which was about 3"x3". Then Loan people said they could not approve unless patch was fixed. The patch was fixed the next day. Appraiser came out on June 29th and OK's the deal. June 30th, now Loan people wanted to re-verify my employment..?? On the day of closing and we had to get this all to the title company today. They called me and said they couldn't get a hold of my manager - well he was off today as I was too as I was putting my furniture in a u-haul truck. So I gave them my HR number. They called and got that verified. 3PM June 30th, now loan people and my realator said the docs have been sent to the title company, but I will receive a call tomorrow and most likely sign. Well that will be July 1st. Past the June 30th deadline. WTF! Are you kidding me! I am possibly going to lose out on 8k over one freaking day. I have told off my loan guy, my realator, and everyone involved in my home sale. It is like a conspiracy to screw me over and let sign on the day after the expiration. I am seriously thinking of walking this deal. Who cares if I loose my escrow and appraiser/ inspection fees. My closing costs are what my tax credit would be. If I loose my tax credit I will never get this 8k back again. This was the whole reason I wanted to buy a house this year. Now I am really faced with a delima. I honestly don't know what to do.

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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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