Denver Real Estate News:
Tax Credit? Maybe or Maybe Not.
Today the bill to extend the closing time form June 30th to September 30th for buyers who contracted by April 30th for their homes has died. For weeks it appeared to be a "done deal" with many people actually reporting via blogs and other communication that the extension actually happened.
Sadly many homeowners who were counting on receiving the tax credit will now be disappointed. Many may even decide not to proceed with their transactions, creating even more disappointment with sellers of the homes they were purchasing.
It appears the reason the bill failed is because as most bills it was packed with a miscellaneous mess of other provisions, none having anything to do with each other. As typical as this is, it hardly seems fair the bill was not presented individually on its own merit.
After all the real estate industry has gone through, the last thing we want to happen is for buyers and sellers to be penalized. The reason the extension is needed is not to give buyers more time to buy, they've already done that. The buyers need more time because unrelated to them the lenders are too backed up to handle the rush.
Gosh, who would have thought such an incentive would have caused a back up in services? </sarcasm> The tax credit offering has been wrought with poorly constructed dates from the beginning. Unfortunately whoever wrote it was misinformed to begin with. OK, so a committee wrote it. We all know committees formed to design a horse end up with a camel.
So is there hope? Maybe. Perhaps in retrospect the Lawmakers will come back from celebrating the 4th of July and decide to do the right thing and provide an extension. Or maybe not.
Guess we will have to continue to watch, wait and see.