There has been a lot of talk about how we may see an extension of the homebuyer tax credit. Because a lot of people waited until the tax credit was nearly over to buy, many of these loans are caught in a backlog. Those who managed to sign contracts by the last day of April will have to the last day of June to see to it that they close in order to receive the tax credit. However, as you well know, making sure the deals close in time does not depend only on the buyer.
As you are probably aware, a number of these sales that were made just as the deadline was looming were short sales. These kinds of sales are more complicated and require more time to complete.
Lenders have been working very hard to process documents for those who signed on before the tax credit deadline. As a realtor, you can encourage your clients to hand in any requested documentation as soon as possible in order to avoid any delays in processing. However, there is discussion of moving the deadline up to the send of September, allowing three more months for transaction to be finalized.
Some in the industry are concerned, however, that extending the tax credit will serve as an added incentive to the dishonest, since there have already been reports of people attempting to backdate documents to make it appear as if they had closed by April 30.
For those who think that the government is too big or too slow to notice, Uncle Sam
should not be underestimated. The IRS could easily ask for supporting documents and records that will be hard to fake.
Plus, since extending the tax credit to all who should receive it legitimately will not come cheap, you can be certain that the government it not going to look kindly on fraud in connection to the tax credit.
Jon, I t hink there is too much public pressure on right now for the government to spend more money they don't have. Not sure the tax credit helped in the long run, as it just accelerated the purchases that would already have been made.
Hi Jon, This does seem to be the talk of many towns ... doesn't it? I believe the credit will be extended. While there are many homebuyers ready, willing and able to purchase without a tax credit ... the credit did spur a frenzy of buying motivation.
I'm not in favor of extending the tax credit, I think it skewed the figures. I'm ready to face the facts and get on with life!
Hav not heard of any concrete talk of estending the tax credit. If I recall correctly Congress in so many words told the NAR the first time they extended the tax credit it would be the last.
Thank you all for your comments. My thoughts are the same as Erika's, so lets hope your right Susan, and hopfuly we can save our kids and grandkids from paying back our debt.
Just remember the Tax Credit is still available for Military personnel and certain Govt employees. I agree though we need to stop relying on the government for these bail out type programs and get back to basics or we will all be in trouble in the long run.