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The Weekend Poll: Extend the tax credit deadline?

As things stand now, home buyers hoping to cash in on a federal tax credit of up to $8,000 must close their deals by June 30. (They must have signed the contract no later than April 30.) But folks at the National Association of Realtors say a rush of business--and ongoing problems with appraisals and short sales--are causing buyers trouble getting their deals closed in time. This week, Senate Majority Leader Harry M. Reid (D-Nev.) introduced a proposal to extend the closing deadline for the homebuyer's tax credit to Sept. 30. What do you think about extending the deadline?

This is a non-scientific user poll. Results are not statistically valid and cannot be assumed to reflect the views of Washington Post users as a group or the general population.

By Elizabeth Razzi  |  June 11, 2010; 5:16 PM ET
Categories:  Buying , Poll , Weekend Poll  
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Comments

Honestly, I think they should extend it for short-sale buyers ONLY...Let me explain....I agree in the sense that the rules clearly state "if you wanted the credit, get it/buy it by this date."...Fine, that's perfectly understandable....There are rules and people must abide by them....This is how this country runs......

But what happens to the short-sale buyers such as myself???

My wife and I have been waiting a lil bit over a month and a half to close on a peice of property that we've worked pretty damm hard to get, on top of the $17,000 we've had to save, since everyone knows in a short-sale, the buyers have to come up with the majority of the closing ...

Unfortunately, we still haven't closed and our hands are basically tied behind our backs....We've somehow lucked out b/c the process has moved quite quickly compared to other short-sales that typically take 3-5 months or more....Now, we find ourselves in a pickle due to the fact we might not get this credit, that we're somewhat relying on....not relying in the sense that we desparetly need it, but more in the sense of something we can fall back on, just in case....in other words a nice reward for our time and effort....you see as of right now, the primary delay are the banks and we honestly think as buyers, in this so-called "buyers market" shouldnt have to be penalized for something we have absolutely no control of...if it was up to me, we would of closed 30 days after the initial bid..Also, the majority of the banks out there don't have a short-sale dept. which delays the whole process 10 folds....We've lucked out since Wellsfargo does have such a dept., but what it boils down to is, we still might not be able to close in time b/c its out of our hands and now with the pressure of not getting the credit is setting in....

Yeah, I'm not gonna lie...it would be nice to get an extension, but I would def. leave it applicable for contract holders only....especially the ones who have waited/still waiting and worked hard to get to where they are now....new buyers...sorry....should of jumped on it when you had the chance....better luck next time....

Mr.Gus-Gus....

Posted by: mrgusgus77 | June 11, 2010 7:29 PM | Report abuse

The deadline was enough of an incentive for buyers and sellers which even allowed some sellers to artificially boost up prices -- enough has been done for the housing market.

Artificial boosters, tax loop holes etc. -- Enough Done!... If someone cannot buy a place because they are not getting $8k from tax payers -- they should not be buying a place at all.

Posted by: free_np | June 12, 2010 1:10 PM | Report abuse

This is a response to Post #1, by Mr. Gus-Gus.

I find it very amusing that you make the comment that the rules should be bended, but ONLY for people in the exact same unfortunate circumstances that you find yourself in. Guess what? Other people are just as screwed as you are, but for different reasons. If there is going to be an exception made, which I think there should, it should take into consideration all the problems the last extension didn't consider.

We're building a new house. We have a signed purchase agreement from last September. We were told it would be finished by the end of June, but due to various circumstances I won't bore people with here, it won't be. So now we could be out $8,000 for no fault of our own. We signed the contract almost a year ahead of the deadline and were told it would be done on time.

But according to your selfish logic, I shouldn't qualify because I didn't buy a short sale home. I would make a profane comment to your right now if it wasn't against the rules.

And if you want to talk economics, the purchase of a new home such as mine, is much better for the economy then you scooping up a deal on a short sale. So should I say that you shouldn't be eligible, only me? Your post had nothing of merit except a bunch of whining followed by a selfish "ONLY PEOPLE LIKE ME!" comment. Grow up.

Whoever wrote up the prior deadlines was an idiot. How can anyone possibly be under contract and close within two months? It's almost impossible. But that's government for you.

If they pass this extension, which I agree should be the last one, they need to make it so anyone who should have qualified but can't, due to no fault of their own, can still claim the credit.

Posted by: phonic | June 13, 2010 12:10 PM | Report abuse

@ the idiot who thinks he's entitled to an extension b/c he built a house..... Haha...that's adorable......For starters don't think you're better than anyone else cause you built a house...In fact you're quite neive......Everybody knows that in a new build NOTHING IS CERTAIN, as far as a closing is concerned, just for the simple fact that there are way too many people involved in the process v.s a buyer who is simply waiting on a bank approval....you didn't even have a 50/50 chance b/c of the time restraints...In fact, if this extention were to take place, it would of been the 3rd-4th time its been extended...whoop-ti-doo Capt. obvious....obviously if your NEW BUILD, couldn't of made the 1st 3 extensions, what made you think you were gonna make it by the 4th..you think the gov. is gonna extended the tax credit for you b/c you decided your gonna build one instead of buying 1 of the trillions home in surplus...do you even realize how many empty houses are sitting vacant in the US...b/c people can't buy or forclosed homes people have to sell....in fact, that's why they made the tax credit.....SO YOU CAN GO OUT AND BUY ONE....not take your sweet time 8-10 months building one ....that's why they HAD a DUE DATE..and for you to think you're helping out the economy is really rich...in fact a buyer who actually buys a short sale helps more in the long run v.s someone who builds...in a short sale not only do you help the sellers avoid a forclosure (like we don't have many of those nowadays) but you've also helped out the banks from losing anymore money invested on a property that could of been forclosed on and sold below market value....also Mr. New build, when you buy a short sale you're not really getting a deal b/c you're STILL buying the house @ market value and not anything less....that's why you still need it appraised and no bank is gonna approve a bid on a house less than what's it worth...that's why its called a short sale vs a forclosed sale.....Lastly..the gov. Didn't make this tax credit so you can take a yr to build a home you idiot....IT WAS SO YOU COULD BUY AN EXISTING ONE....

Apparently you are relying on this 8g's cause it seems like you're gonna need it vs someone who looks @ it as a reward from the gov. for purchasing....like Mr. comment #2...he's right in so many ways....IF IT'S OVER IT'S OVER.....I can live without it....It wasn't like I was gonna use that money to help me pay my mortgage....

I stand by my decision.....

Mr.Gus-Gus

Posted by: mrgusgus77 | June 13, 2010 5:23 PM | Report abuse

Gus-Gus,

Based on the comments in your initial post: "...it would be nice to get an extension, but I would def. leave it applicable for contract holders only...", it seems that you don't understand that the extension proposed IS only for contract holders. I had my contract complete by mid-April, and due to mistakes made by the seller and the bank, the financing has been delayed to the extent that we will not be able to close by the end of June.

Personally, I am opposed to the tax credit in general, as it introduces a silly distortion into the market. But it is a feature on the economic landscape, and so, if you are buying a property, it must be taken into account when considering the amount you are willing to pay. Whether you need the $8K or not is entirely irrelevant. Anyone who has a contract that was negotiated with the understanding that they would be getting the credit figured that into the price that they were willing to pay. If you didn't you probably wouldn't be able to come to an agreement with the seller. Losing the credit means that the property that they are obligated to purchase is now $8K more expensive than it was before. In my case that is like adding 5% to the price I agreed to. Whether I need the money is not the issue. The essential terms of the deal have changed.

I would think that if you have any experience in real estate investment,or any other kind of investment for that matter, you would understand this.

I don't understand why the credit should apply to short sales at all. It is already difficult enough to evaluate the investment in a short sale, adding the credit just further muddies the water.

P.S. If you are going to call someone else an idiot, you should at least check the grammar/spelling/usage in the rest of your comment.

Cheers,
Ben

Posted by: btbredf | June 14, 2010 2:56 PM | Report abuse

@ Ben...you're right.....under contract can mean several things....in your case, it seems like things were going back and forth....which is explainable.....everybody goes thru it such as I have....In fact, that happened to us on the 1st house we initially had a contract on the beginning of Feb., seller owned, and for the same problems you're having, we initially backed out and got our binder back....but in your circumstance, you were dealing w/ less than a hand full of people...2 at best...and if everything were to go smooth, you would of probably closed 30-40 days after you signed the contract....But guess what, you didn't have to wait 8-10 months to a year to get your house buit...nor deal w/ a contractor, electrician, or all the rest of the people involved to do their jobs accordingly so you can get 8g's back....

I'll say this....I can man up and say my "short sale only" comment is a lil out there, and def. take your situation into consideration, which, b.t.w. very valid....I def. would like to see you get your credit for those new hardwood floors (hehe)...but the diff. b/t your contract v.s. mr. New build is you actually got off your ass, went out there and BOUGHT A HOME...NOT TAKE A YR TO BUILD ONE.....but as for Mr. New build, don't come crying to the gov. b/c it took you a long ass time to build...nobody asked you to build and no one asked you to be under a contract for a yr....psssst...In fact, if you're a 1st time home buyer (which is what the tax is for anyways/ unless a 5yr owner, which you can only get 6,5000 anyways)...What the hell are you doing BUILDING A HOUSE!!...if you got that kind of cash to drop and hire several people to make this happen....why the hell are you crying about the gov. not giving you money back......psssst..SHAME ON YOU......you knew there was a good possibility you were never gonna get it. from the get go.....and if you thought you were...you were duped by you're realtor/contractor.....

Anyways...you Ben, do somewhat meet the requirements in regard to being under contract...the diff. is you bought...not built......I wish nothing but good luck to you and I hope you close soon....I stand corrected

Oh and p.s.......I've called people worst....idiot was just trying to be nice....and for the record, try typing an essay on a touch screen phone and not have errors here and there....gotta love my Android phone thou....

Mr. Gus-Gus.....


Posted by: mrgusgus77 | June 14, 2010 6:55 PM | Report abuse

I guess everyones happy now....the extensions went thru...

Better close by the 30th of Sept.

Thanks America...LOL

Mr.Gus-Gus...

Posted by: mrgusgus77 | June 16, 2010 6:10 PM | Report abuse

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