Extended Home Buyer Tax Credit



Posted: Wednesday, May 26, 2010

by PRA Law
Pellettieri, Rabstein & Altman

The end of the tax credit was due to close April 30th of 2010, now creating a rush to sell. Real estate agents say that home buyer and sellers are rushing to take advantage of the tax credit, which is worth up to $8000. The tax credit appears to have increased home prices in the past few months. Some home owners are drastically dropping their prices on their homes in order to sell before the tax credit expires. This causes the home owners to walk away from the deal relieved to sell but unhappy at the selling price.

The problem the government is facing now is what to do next and how to gently remove the tax credit without causing too many problems. Many states are administering or extending tax credits or other measures hoping to bring the market out of the plunge. Home buyers who want the tax credit of $8000 have to sign a deal by April 30th to have until June 30th to close on their home. A $6500 bonus is also given to those who have lived in their home for 5 to 8 years and are buying a new home. New Jersey has stopped part of the program that provides up-front funds for home buyers entitled for the federal tax credit. NJ is the only state waiting for guidance for loans from the Federal Housing Administration.

In the beginning of March, government regulators met to extend a refinancing program for homeowners whose homes had dropped in value. The Federal Housing Finance Agency noted that the original date to expire the tax credit in June has been extended until mid 2011. This is intended to help the market stabilize and grow throughout the year. With the help of many government agencies, they aimed to reduce foreclosures and promoting sales. Legislators and experts believe the tax credit has encouraged home buyers to move ahead in their purchase plans.

About the Author Craig Lewis is a certified home inspector and owner of LH Inspections in central New Jersey . Craig is the creator of innovative online real estate sales tools that help his clients sell pre-inspected homes in the central NJ area. These tools include http://www.presurveyedhomes.com, http://www.njflatfeelistings.com and http://blog.njflatfeelistings.com

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