Good news for homebuyers that are currently under contract on a home. The Federal Government has extended the $8,000 first time home buyer tax credit on all pending contracts until September 30, 2010.
Previous tax credit required buyers to close on or before April 30, 2010. Due to the overwhelming amount of purchases, the lending process is taking longer. Also, many pending sales were on short sale or distressed properties in South Florida, which take longer to negotiate than a convention sale. As a result, first-time homebuyers currently under contract will have an extension of 3 months (September 30, 2010) to close on their properties giving lenders more time to process the loans.
This 3 month extension will definitely help the real estate market! I just wish that the government would extend the tax credit to new buyers. I wrote a previous article entitled: Calling President Obama! Bring Back Real Estate Homebuyer Tax Credit! The tax credit really helped unload a quantity of South Florida real estate inventory, especially foreclosures and short sales.
But, what will the future hold? What new plan will the government and real estate community come up with in order to get new first-time home buyers off the fence to purchase this Summer and into the end of 2010?
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