President Barack Obama signed a bill which extends the closing deadline for the federal home buyer tax credit to Sept. 30, 2010. Because the bill is retroactive, it covers the period from June 30, 2010 to the date of enactment of the extension. This supersedes the previous bill which called for all transactions eligible for the tax credit to be closed by June 30, 2010.
According to the California Association of Realtors® website, approximately 180,000 homebuyers would have been unable to take advantage of the tax credit had Congress and the president not taken action to extend the deadline for closing escrow. The National Association of Realtors® calculates that approximately seventeen thousand homebuyers in California would not have received the tax credit without this extension.
This extension comes as a great relief to buyers of short sales. Short sales are time-consuming transactions and closing dates are difficult to predict with certainty. Ninety additional days for closing will now allow patient short sale buyers to take advantage of this tax credit.
Click here to read more about the federal homebuyer tax credit.