Congress offered an $8,000 credit for first time home buyers ($6,500 for repeat buyers). To receive this credit the home had to be under contract April 30, 2010 and close by June 30.
Many buyers have been unable to get their properties closed in time. Settlements involving short sales for example can take many months to complete. I was in the Baltimore City tax sale office yesterday. This same office handles lien sheets and transfer taxes. A title company employee was there with an expired lien sheet. This could stop a settlement dead in it’s tracks. Title companies were scrambling this week to get huge numbers of deals closed. Through no fault of a buyer they could be out the $8,000 credit.
Yesterday the House of Representatives passed a bill extending the deadline to close on a home to receive the $8,000 credit for the purchase of a new home. Today the Senate took up a bill to extend the closing time. I would be against extending the credit itself but I do feel that buyers should have ample time to get the deal closed to get the credit. Buyers have little control over how long it takes to get a property settled. Almost all of the work is out of their hands.
What do you think? Leave a comment.
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