Good news for Phoenix homebuyers in search of the $8000 homebuyer tax credit. The Senate on Wednesday approved a plan to give Phoenix homebuyers 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 would give buyers until Sept. 30 to complete their purchases and qualify for the $8,000 homebuyer tax credit. Under the current terms and conditions, real estate buyers had until April 30 - 2010 to get a signed sales contract and until June 30 - 2010 to complete the sale.
The proposal, approved by a 60-37 vote, would only allow Arizona Home Buyers who already have signed contracts before April 30th of 2010 to finish at the later date. About 180,000 homebuyers who already signed purchase agreements most of them in Short Sale scenario would otherwise miss the $8000 homebuyer tax credit deadline.
Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation's highest foreclosure rate, and Reid is facing a tough re-election campaign.
The Realtors group has been pushing hard in Congress for the extension of the homebuyer tax credit. Mortgage lenders, have been swamped with borrowers trying to get approved by the end of the month creating a huge back up in underwriting departments throughout the nation. Many potential borrowers are unlikely to make the deadline and in some cases will walk away from a good deal. Leaving the market with an over-saturation of homes available to homebuyers in Phoenix. Thus, creating a stronger buyers market another downward drive on property values because of high availability of Lender owned and Short Sale homes in Arizona.
"If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the $8000 homebuyer tax credit, even though they have completed contracts," the Realtors said a a letter to lawmakers.
First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.
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