Much is being said about the home buyer tax credit extension. This proposal is part of a larger bill aimed at closing a variety of tax loopholes and to create extensions for other tax policy issues and federal program renewals. As of Friday, June 18th, the Senate could not get required votes to pass this as is.
Here’s how it works: Home buyers were to have been under contract to purchase a property by April 30, 2010. Most home buyers, who met the qualifying income and other criteria, were eligible for the credit, even those that sold a property and purchased another one (as long as the property was/is their personal residence). First time home buyers would be receiving up to $8000 and repeat home buyers would be receiving up to $6500.
Originally, the deadline to close the deal was June 30, 2o10. The US Senate included a proposal to extend that closing date to September 30, 2010. This discussion came about because so many lenders and title companies became overwhelmed by the amount of files that needed to be consummated by June 30. So, because of public outcry and congressional lobbying by big lending, the idea to extend the CLOSING DATE ONLY on these deals was introduced.
Wall Street Journal article from June 11 expresses the idea that this extension could help those trying to defraud the system by back dating their purchase agreements to April 30. That would mean anybody could, ostensibly, write a purchase agreement anytime and, if all parties agreed to the fraud, put a date of April 30th on the paper work. Let’s hope everyone has learned their lesson about bilking the government and taxpayers out of these funds, ESPECIALLY lenders! The last decade was rife for fraud in the mortgage and real estate industry. If someone introduces this idea to YOU, blow the whistle!!!!
Time for you to sell or buy a house for sale in Minneapolis or any Minneapolis cities? Contact me today so I can give you the details you need to be an informed consumer.
Susan Hofflander is a seasoned real estate professional, providing real estate consultations for home buyers and sellers in the Twin Cities since 1994. Susan specializes in homes for sale in Lake Calhoun/Lake Harriet, Minneapolis, Plymouth, MN, Minneapolis Western Suburban Cities and Downtown Minneapolis Lofts.
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