Frustrated home buyers trying to complete short sales or get flood insurance stand to benefit most from an extension, which has not yet passed Congress, but is being pushed by Senate Majority Leader Harry Reid, D-Nev.
Reid, who is up for re-election, said last week that buyers should have until the end of September to complete their deals because of delays beyond their control. As it is now, buyers who signed contracts by April 30 must close by the end of June to get the $8,000 first-time credit or the $6,500 credit for certain people who already own homes.
Only buyers who signed contracts by April 30 could take advantage of an extension. The Senate is expected to consider Reid's measure this week.
Short sales, in which sellers unload homes for less than they owe on their mortgages, often drag on for weeks or months while lenders consider whether to approve the deals. New federal guidelines introduced in April give lenders a 10-day window to respond to short sale offers, but some banks aren't complying, real estate agents and analysts say.
Reid's proposal would be a major benefit for buyers who need more time to let the process play out.
"I'm just twisting in the wind," said Smith. "I really hope this gets extended. It would take a lot of pressure off me."
His real estate agent, Ryan Love of Coldwell Banker, said they're waiting for a letter of approval from the lender.
"We keep getting the 'Oh, it's coming today or tomorrow' line," Love said.
Even people who aren't buying short sales are hoping for an extension.
Some deals are being delayed because buyers can't get flood insurance. Lawmakers let the National Flood Insurance Program expire three times this year. No new or renewal flood policies can be issued until Congress renews it.
Bill Mei, a loan officer for Element Funding in Pompano Beach, said the lack of flood insurance has killed one of his home sales and postponed two others. He's concerned about a few closings scheduled in the coming weeks.
"It's a big mess," he said.
The crush of buyers trying to complete sales by the end of June "is creating a clog in the system," said Walter Molony, a spokesman for the National Association of Realtors. "It's taking longer to close transactions."
The national Realtors' group estimates that 180,000 buyers are at risk of not closing in time to receive the credits.
Meanwhile, the pending expiration of the tax credits has home builders feeling less confident.
The National Association of Home Builders said Tuesday its index measuring member optimism dropped to 17 in June from 22 in May. The index had risen for two consecutive months.
Source: http://www.sun-sentinel.com/business/fl-homebuyer-credit-extended-20100615,0,7986336.story
Paul Owers can be reached at Powers@SunSentinel.com or 561-243-6529
The Criscitos has been selling South Florida luxury and commercial real estate for over a decade and has sold over $1 billion dollars of property. They work as a multi-lingual team speaking english, Spanish, Italian and Portuguese. They carved out a niche as a leading boutique real estate company with two distinct divisions -residential and commercial- both personally overseeing by Marcela and Anthony Criscito.
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