June 30, 2010
Hundreds, perhaps thousands of people who purchased homes in April expecting to get the federal tax credit are in danger of losing it if they don't close by today.
But the House of Representatives voted overwhelmingly Tuesday to give them an additional three months to settle.
The tax credits, up to $8,000, were awarded to buyers who made their home purchase by April 30. But the law also stipulated they must close on the deal by June 30.
Under pressure
For most buyers it hasn't been an issue. According to the Treasury Department, some three million buyers claimed the tax credit though May 22. But overwhelmed mortgage companies have been struggling to close all the sales by the deadline and are running short of time.
Also, some sales are more complicated than others -- particularly "short sales," in which the buyer is paying less than the amount owed on the mortgage.
With many home-buyers counting on the tax credit in order to afford the house, the House of Representatives voted 409-5 to give them additional time. The measure now goes to the Senate, where passage is expected.
