Last fall, Congress extended an $8,000 tax credit for first-time homebuyers and added a smaller $6,500 credit for current homeowners who were buying a primary residence. To qualify for the credit, buyers had to sign purchase contracts by April 30 and close on the home by June 30.
As the cutoff to qualify for the federal tax credit looms on the horizon, Congress is considering an extension for homebuyers who are racing to close home sales in order to receive a federal tax credit.
Experts in the real estate industry warn that many buyers who rushed to buy homes to qualify for the tax credit may not close before the deadline, and this would result in home buyers losing out on thousands of dollars if lawmakers don’t act.
One of the major issues is that there are a large amount transactions that need to be completed, and the companies responsible for handling the sales, including mortgage lenders, appraisers and title insurers and real estate brokers, are struggling to keep up.