Anyone riding the short sale pipeline may have seen many buyers getting antsy as we came to the end of the filing period for tax payers to cash in on those home buying incentives. Well many of those last-minute buyers can wipe the sweat off their brow along with saving a lot of short sales in the process. Buyers in all 50 states would be gritting their teeth due to missing out on the tax incentive and in many cases rethinking their game plans. In many cases Listing Agents from across the United States have been fighting to keep buyers on board for those transactions on the border line and in many cases dealing with buyers being ready to walk along with offers generally coming down to compensate for the loss of the tax incentives. The Homebuyer Assistance and Improvement Act (H.R. 5623) applies only to transactions that have “ratified contracts” in place as of April 30, 2010. The legislation is designed to create a smooth transition between the current set date and pushing the new closing deadline for eligible transactions to September 30, 2010. There will be no gap between June 30 and when President Obama signs the bill into law. NAR along with Congressional leaders on both sides of the aisle worked together to enact the extension and make it law.
In many cases a change in price can many times wreak havoc on a short sale and even send a file back to the investor for a whole re-review. This new law will continue to help stabilize the market as property purchase have already dropped more than 7% as opposed to the originally expected rise of 5%. This market is a wild ride but we are sure that leaving it to the last-minute before extending it did not help anyone. In fact we are hoping that some of our readers have experienced this too.
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