Monthly Skinny: June 2010

Senate OKs New Tax Credit Closing Deadline

Backers of Amendment Cite Backlog of 180K Homebuyers

The Senate has amended a bill to give homebuyers who were under contract on a home purchase by April 30 an additional three months to close the deal and claim the federal homebuyer tax credit.

Extending the deadline for closing from June 30, 2010 to Sept. 30, 2010 would allow lenders more time to clear a backlog of 180,000 homebuyers nationwide, said amendment sponsor Sen. Harry Reid, D-Nev.

The amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" -- which primarily extends unemployment insurance benefits -- was approved in a 60-37 vote Wednesday.

The House passed an earlier version of the bill in December, and the Senate approved its own version in March. The Senate is currently working on resolving differences between the two bills.

The National Association of Realtors supports the amendment, saying Realtors have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.
The amendment does not extend the deadline for homebuyers to qualify for the tax credit, NAR said in urging lawmakers to approve it, but simply extends the deadline for closing transactions already in contract.

"Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs," NAR President Vicki Cox Golder said in a statement.

By Inman News, Wednesday, June 16, 2010. Inman News

"Buying into the City" Tours

Looking for an updated older home? The city of Minneapolis is holding home buyer tours of about 30 available properties on June 13. Many of the Cape Cods, bungalows and Tudors are foreclosed properties that have been bought and fixed up by nonprofit community developers.

Potential home buyers can talk to residents and get a feel for the south and northeast Minneapolis neighborhoods in which the tours will take place. They also can gather information about home buyer assistance programs. Home prices range from $100,000 to $250,000.

The event is designed to help revitalize Minneapolis neighborhoods hit hard by foreclosures, said Cherie Shoquist of Minneapolis' Community Planning and Economic Development department. "It's an excellent way for people to meet neighborhood residents who are invested in the community and see the quality of rehabbed housing," she said.

A grass-roots neighborhood organization, Get to NOMI, will hold tours of available north Minneapolis homes on June 20 to promote the area's attributes. Call 612-481-5635 or send e-mail to mynewneighbor@gmail.com.

And remember, BRI Bloomington Realty is always here to help you with your home buying and selling needs.