2nd Extension of Homebuyer Tax Credit Seems Bleak

the April 30th deadline, yes. the June 30th closing, no.

It's a new condo sale. But the seller assured me that we'll be able to close by June 30th. In any case, the closing deadline can be put in the contract, right?

Enough of the gov't RE subsidies... these sorts of tax benefits help push inflation and irrational markets we don't need.

dont you have to be in contract by April 30? when is the last day you can close?

hoc84: It's doable if you have your financing ready to go the minute the ink on the contract is dry. We had a signed contract 1/22 and really wanted a 30-day close, but it took our bank three weeks to go from preapproval to an actual mortgage commitment letter (the snowstorms slowed some of our paperwork-processing), and the the seller (sponsor sale on a new condo) took another few weeks after that to get all its paperwork lined up (we had a mortgage assignment, we made closing costs way cheaper but also made the legal stuff more convoluted). Give yourself wiggle room -- we were slated for a 3/25 close but had it postponed the night before because the seller didn't get their paperwork finished. Finally closed 4/1.

Also, yes, you can put the deadline in the contract, but all those details pretty quickly turn into a game of chicken. If they miss the deadline, what are you prepared to do about it -- walk away from the deal and fight for your deposit back? Basically, it'll help your peace-of-mind a lot of you know going in how you want to handle all the various worst-case-scenarios. We had to write off a few things we legally could have fought for because we decided it wasn't worth losing the deal over.

Kiz, thank you for your answers. I probably wouldn't walk away, but I do want to know my chances of actually making the June 30th deadline.

even if you have the June 30th deadline in the contract, they can easily drag it out another 30 days. speak to your attorney to explain. there's the "time is of the essence" letter that needs to go out at or after the deadline that adds 30 days.

"Enough of the gov't RE subsidies... these sorts of tax benefits help push inflation and irrational markets we don't need."

Agreed. We're out of the worst of the crisis, time for homes prices to go where the market dictates, not some artificially inflated high. If thats still lower, well then thats where they need to go.

hoc84 - you should have no problems getting the contract executed by 4/30. You should make sure the condo is substantially complete. The bank would have no problem closing you by 6/30 but you should make sure tco is in place or will be in place soon. That's the last thing you want to deal with come June. Adding a 6/30 closing contingency would probably be a good idea. Also, you should make sure the condo is approved by the bank. sunny.hong@bankofamerica.com

Hoc84. If you r a girl, wipe front to back
2) structure the contract so if not closed in time thru no fault of your own, seller pays for value of tax credit.
3) no means no.

w67thstreet: I'm a guy, but it's nice to see that one can get advice on their hygiene from a Real Estate forum. Your second point is reasonable.