Associated Press | The Senate has approved a plan to give
home buyers an extra three months to finish qualifying for federal tax
incentives that boosted home sales this spring.
The move by Senate Majority Leader Harry Reid (D-Nev.) would give buyers
until Sept. 30 to complete their purchases and qualify for tax credits
of up to $8,000. Under the current terms, buyers had until April 30 to
get a signed sales contract and until June 30 to close the sale.
The proposal would only allow people who have signed contracts to finish later. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
Reid added the proposal to a bill extending jobless benefits through November.
Lets just keep shoveling money we dont have out the window! Great job!
“The proposal would only allow people who have signed contracts to finish later.”
More fuzzy-headed reporting from the Tribune.
Yes, I’ll agree with the fuzzy reporting, but blame Associated Press for the shoddy reporting, not the Trib.
Let me get this straight, this only applies to people who had a signed contract prior to April 30?! How is this supposed to help stimulate anything? THEY ALREADY SIGNED A CONTRACT TO PURCHASE THE HOUSE! So basically we are subsidising home purchases that people were unable to close two months after the signing date in order to……
If you can fill in the blank I would love to know.
This is ridiculous. Cut unemployment but give those who HAVE another fricking tax break. May they all go to HELL!
Addendum to city guy’s savvy comment. And let’s keep funneling that $$$$$ to people who, in large part, won’t be able to keep up the payments.
Well- there are 180,00 people out there that lost the money because the banks can’t keep up with all the closings. That will help them to spend money for things on the home.. or help them reduce the price of a house they are trying to sell.
You are accurate though.. why just extend the finish, if it worked offer it retroactive to those who bough in May and allow for more to buy through July. I am one of the lucky ones, so wont complain, but that 1/2 sided logic is why dems will lose in Nov.
in order to…let people like me get the $8000 credit I need to pay bills when uncontrollable circumstances force my builder to finish the home literally 1 day too late, after having subcontractors working overtime and on weekends to get it done.
and I’m one of them, although, I am an elephant.
Some of you people…geez.
It already did the stimulating, I guess you didn’t keep up with those news articles. But all the stimulating will backfire if people can’t close in time. We wrote our contract on Apri 4 with a builder who said he could get it done. Additionally, the banks (even our lender Bank of America) is completely swamped, not necessarily with work, but with the time crunch.
Don’t be confused, this extension IS NOT “shoveling” MORE money away, it’s just safeguarding the shovel-ees.
Well- there are 180,00 people out there that lost the money because the banks can’t keep up with all the closings. That will help them to spend money for things on the home.. or help them reduce the price of a house they are trying to sell.
You are accurate though.. why just extend the finish, if it worked offer it retroactive to those who bough in May and allow for more to buy through July. I am one of the lucky ones, so wont complain, but that 1/2 sided logic is why dems will lose in Nov.
Hey ‘city guy’ – That credit is one of the only government programs that has actually motivated people to do anything, of late – - aside from sharing their under-informed opinions on comment boards.
dddave– umm the ‘tax dollars’ that are funding that ‘plan’ being used are yours, mine, everyones. Except of course, the guys buying the home. Just about the only people benefitting are banks and ‘maybe’ a home buyer (who 90% of the time rolled the 8k into mortgage reduction).
So yay! The banks get more help fromy my taxes and WE pay for it. Great successful plan! (you might want to be informed someday yourself..)
Wow! you know all 180,000 home buyers that this effects and you know them well enough to know if they can afford the houses they are trying to buy, you have a lot of friends. Before you throw out blanket judgments on people who you have absolutely 0 knowledge of why don’t you just do everyone a favor and take your ignorance to fox news so people with an average to above average IQ do not have to sift through your un-informed comments.
The biggest benefit of this is buyers who are trying to buy short sales are given more time. Right now short sales are taking forever, and some buyers are planning on canceling their contracts if they can’t close before 6/30. That hurts the sellers, the buyers, and the banks.
Don’t stop clapping or the fairies will die!!!
- Congress
Hey, I need money – give some to me too! Reid must be getting senile – he probably had a dream that nobody has to pay for his political follies. Throw the bum out.
Watchman
Hey, I need money – give some to me too! Reid must be getting senile – he probably had a dream that nobody has to pay for his political follies. Throw the bum out.
Watchman
Honk your horn if I’m paying for your house and mortgage…
Helps me so I’m happy. This is the New America, after all; “The Land of the Free (to make a quick buck at anyone else’s expense).”
Unlike most irresponsible Americans, I actually saved enough money to put down a downpayment on a house, BUT I’m also of an income level where $8k is going to make a significant impact on my decision to purchase. Sure, this is probably going to entice people who can’t legitimately afford houses to buy them, just like the previous generation of $80k-a-year earners buying $400k houses, but it will also help some responsible people like myself as well. And I’m paying for a bunch of stuff I don’t support anyway, like wars, no-bid contracts and corporate handouts, so I’m not averse to receiving my share of the pie.
I just laugh in the general direction of the whiners who are probably among that group with a huge mortgage worth “a whole lotta nothin’.”
I am so very hopeful that this extension might become a reality. I am a Realtor in California, working with multiple first time buyers who signed up for 30 day escrows and are now going into their 60 and 70th days… why? Because the lenders have so much paperwork and so many files that it’s taking them that long to underwrite the loans or even open the files. Many of my buyers are only able to purchase a home because of the first time buyer credit opportunity. Without it, their dream is lost. At no fault of the buyers, they are faced with lender time lines. A few extra days or weeks will make all the difference for many of these deals.
“Don’t stop clapping or the fairies will die!!!
- Congress”
LOL!
why are we only giving people who are buying home a few thousand dollars? as long as we are giving away money why not guarantee the price of every home at the price people paid for it within the last 5 years? the real problem with the housing section of the economy is that housing prices are down and keep falling. Guaranteeing home prices would provide a floor under which prices cannot fall. wouldn’t that make everyone feel a lot better? Sure it would cost a lot money but we are already in over our heads , so what’s another trillion? Besides what’s the alternative, to let every homeowner suffer a long term loss?
Unless I’m mistaken this story is not quite accurate. I believe that the vote was merely to attach this addendum to the jobs bill. Nothing has been passed yet.
It’s a tax CREDIT, not a “bailout.” The government is not giving anything, just not taking that amount that is in the credit. This program, by all accounts, was wildly successful. It stimulated the economy. Keeping the program going to ensure that all of these sales close helps everyone. If you can’t see that then I don’t know what to tell you.
The 8,000 tax credit pushed summer sales into a short period on the spring, when home sales are usually higher anyway (just like the cash for clunkers hit at the car sales annual peak) – after the rebate/ credit ended, the demand dried up, creating a dip in sales that is directly proportional to the rise in sales caused by the rebate.
This push of demand overloaded the banks, who cannot process all the loans (and refi’s) fast enough. So… the Dems CAUSED this problem, and now they have to amend the law to fix it.
I have had an offer in on a “short-sale” house since March 12th, 2010.. and since the mortgage is owned by Suntrust Bank and 2 other “investors” it has taken over 3 months and we still have not gotten an answer from anyone so I am actually glad that now there is a chance for me to get my “first time home buyer tax credit”