Homebuyer Tax Credit Deadline NOT Extended. But Senate Vote Adds Reid Amendment

News wires are buzzing with reports that the Senate just approved an extension of the homebuyer tax credit's June 30 closing deadline.</p

THESE HEADLINES ARE MISLEADING!!!</p

The June 30 closing deadline has not been extended…but it was accepted as an amendment to the Tax Extenders Bill. Under the amendment, borrowers who signed purchase contracts by April 30 would be given three extra months to close their loan and still qualify for the homebuyer tax credit. The new deadline would be September 30, 2010.</p

In a budget “point of order” vote taken this morning, the Senate actually voted against the bill that contains the homebuyer tax credit extension amendment. This forces the Senate Finance Committee, chaired by Senator Max Baucus, to rework the overall proposal before another vote is taken. </p

While this may be a cause of concern for borrowers who are awaiting a clear to close on their loan file, the “unanimous consent agreement” that set up the vote this morning says that any amendments accepted into the Senate Finance committee's version of the legislation would stand as long as the reworked bill is eventually approved by the Senate. Thus, the homebuyer tax credit closing deadline extension proposed by Senate Majority Leader Harry Reid would stand if the Senate agrees on the reworked version of the proposal. This only applies to the Senate. The House would still need to reconcile.</p

HERE is the statement released by Max Baucus.</p

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.