Santa Rosa, CA -- (SBWIRE) -- 06/21/2010 -- Homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The real-estate industry ( http://www.fhasubmissions.com ) has warned that tens of thousands of buyers who rushed to buy homes to qualify might not close before the deadline imposed by Congress, meaning they could miss out on receiving credits worth thousands of dollars without action from Congress.

http://www.youtube.com/watch?v=voVtkXCcZ7k

Congress last fall extended an $8,000 tax credit for first-time home buyers and added a smaller $6,500 credit for current homeowners who were buying a primary residence. To qualify for the credit, buyers had to sign purchase contracts by April 30 and must close on the transaction by June 30.

But there are so many transactions in the pipeline that the companies responsible for handling the sales, including mortgage lenders, ( http://www.fhasubmissions.com ) appraisers and title insurers and real-estate brokers, say the last-minute home-buying rush in April.

There is a very good chance this will pass so if you are inescrow and not happy with your interest rate but decided to take it in fear of losing out on the home and the tax credit this is good news to your ears because 90 days gives you the ability to take your time and find a loan that is just for you.Interest rates have dropped to a all time low thie past two weeks so you are almost certain to find a lower loan payment.

If you are in escrow and you’re concerned that you are having challenges with your financing, ( http://www.fhasubmissions.com ) this may be an opportunity to get that lower rate and the keys to your new ome without having to completely stress out about the deadline.

I will follow this issue and as always and will be one of the very first to report on it so stay tuned... should I hear something sooner this week regarding the extension of the $8,000 closing deadline you will be the first to know.

Despite optimism yesterday that the measure would pass, the bill was defeated in a Senate test vote today, 52-45.

The bill would have extended unemployment benefits ( http://www.fhasubmissions.com ) and a variety of other tax breaks. It was defeated largely because of the cost of the legislation, which would have added something in the neighborhood of $80 billion to the deficit. The total cost of the bill would have been more than $140 billion dollars. The growing concern over federal deficits and the (nominal) push toward fiscal austerity caused many Senators to vote against the measure.

Democrats will now head back to the drawing board, hoping to make enough concessions to get the necessary votes to pass the bill. Whether the extension of the closing date of the first-time home buyer tax credit will be in a reconstituted bill remains to be seen.

Jeffrey Martino Young at Essex Mortgage Bank in Santa Rosa,Ca.95404 .Should you wanna chat you can reach me toll free 1-877-870-2676 or leave me a question on my website http://www.fhasubmissions.com

More information can be found online at http://www.fhasubmissions.com

Press Contact:
Jeffrey Martino Young
Essex Mortgage Bank
1585 Terrace Way, Suite 158
Santa Rosa, CA 95404
1-877-870-2676
jyoung@essexmortgage.com
http://www.fhasubmissions.com