Posted on November 6, 2009 by Richard Rubin

Senate & House Vote to Extend Homebuyer Tax Credit

Buying a home is about to get cheaper by $6,500 for a whole new crop of home buyers The current tax credit of $8000 for first-time buyers has been extended to May 1st. 2010, and for repeat buyers a credit of $6,500 will now be available but only if they have lived in their current home for five of the past eight years. Home prices are capped at $800,000.

Both the Senate and the House approved extending and improving the existing tax credit this week and the White House said President Barack Obama would sign the bill today (Friday 6th Nov, 2009.)

Good news indeed for taxpayers who will now be able to claim the credit on their federal income tax returns.  If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.

Former real estate executive,  Sen. Johnny Isakson, R-Ga said yesterday "This is probably the last extension."  Buyers in both groups will have to sign a purchase agreement by April 30 2010, and close by June 30.

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Posted on October 31, 2009 by Richard Rubin

Tax Credit Extended - Someone is Listening

“Someone is listening.” During the past year, we have read much about the First Time Home Buyers tax credit, which provides up to $8,000 to first time-home buyers but is set to expire at the end of November. The Senate now has a bill which, if passed and then send to the House for similar action, could extend this tax credit up to April 30, 2010 and may also be available to repeat buyers at a reduced credit who have owned their homes for at least five years.

Within minutes of this release to news agencies, Realtor groups and other related real estate authorities began to publicize these events. Warning: This widely circulated news is depressingly, not a done deal, but at least we know that someone in Washington is listening.

We are living in the middle of extreme and significant changes in housing, jobs and the fallout from a challenged economy. We thought that someone was listening when the Federal Government classified loan modifications and lender based work outs as its #1 priority. Simply stated, it has not happened. The statistics bear out the overwhelming failure of this initiative to keep homeowners in their homes by loan modifications.

Frustrated by so many failed Federal homeownership programs, we should all be wary of this published Federal tax credit extension until it is passed into law, but we should also be pleased that “someone is listening” in Washington, and knows that our homeownership needs must be addressed to accomplish an economic recovery.

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