Home Buyer Credit Is Extended

On July 2, 2010, President Obama signed into law bills extending the closing deadline for claiming the federal homebuyer tax credit and temporarily reinstating the National Flood Insurance Program. Under HR 5623 homebuyers who were under contract by April 30 now have until Sept. 30 to close their home purchase and claim the federal homebuyer tax credit, if they meet other eligibility requirements. Real estate and lending industry groups said thousands of homebuyers would have missed the original closing deadline of June 30 because they were waiting for bank approval of short sales, or coping with other delays caused by third parties handling their closings.