Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Tax credit extension
1. Valuable information for buyers and sellers.
On Friday, July 2, President Obama signed two
important pieces of legislation into law to help
homebuyers.
The first one extends the closing deadline for the
homebuyer tax credit until September 30, 2010,
for any transactions that had ratified contracts in place as of April 30, 2010, but
did not close by the June 30, 2010, deadline. The legislation creates a seamless
extension, and therefore, there will be no gap between June 30 and the date the
President signed the bill into law.
Due to the high volume of home sale transactions that needed to be closed
by June 30, there were up to 180,000 homebuyers who were eligible for the tax
credit, but were unable to close before the deadline. The extension will enable
the majority of these home sales to close, and for the buyers to receive the tax
credit.
In addition, the National Flood Insurance Program, which provides flood
insurance to homeowners in participating communities in flood-prone areas who
could not otherwise obtain coverage due to cost or ineligibility, was also extended
until September 30, 2010. As a result, buyers in these areas can now obtain
mortgages and transactions can move forward. This bill is retroactive and covers
the lapse period from June 1, 2010, to the date of enactment of the extension.