June 30th, 2010 the Senate overwhelmingly voted to extend the closing deadline for those buyers who qualify for either the $8K first time homebuyer credit or the $6500 existing homeowner credit. President Obama is expected to sign the bill into law Tuesday, July 6th. What does this mean for all of the would-be homeubyers?
Under the extension the homebuyer must have met the April 30th deadline to be UNDER CONTRACT for a home. Since short sales are making up a large portion of the homes currently under contract the extension merely provides more time to close to transaction. The old deadline was June 30, 2010 to close. The new deadline will be September 30, 2010.
It is estimated that approximately 200,000 people would have lost out on the credit had the deadline not been extended. Congress has been trying to pass the extension for the last month, but it got caught up in Washington politics. Only when it was separated from a larger jobs bill did deficit-wary lawmakers sign off on it. The extension will lower the deficit by $9 million over a decade since it is offset by certain other provisions.