Congress backs home tax credit extension
Homebuyers with contracts signed by April 30 who failed to close by the June 30 deadline will now have until September 30 to complete their purchases, Reuters reports. The House of Representatives approved the bill on Tuesday, which now goes to President Barack Obama for his signature.
The $8,000 tax credit for first time homebuyers and $6,500 credit for others purchasing a new primary residence became an extremely popular measure by the Obama administration to jump-start home sales during the recession.
Real estate agents complained that thousands of homebuyers would miss the June 30 deadline because banks and settlement offices were struggling to deal with the volume of people rushing to close on their homes.
"In addition to helping thousands of families experience the American dream, this successful and popular program provides a much needed boost to Nevada's housing market and economy," Senate Majority Leader Harry Reid said in a statement. Reid, a Democrat, faces a tough re-election battle in Nevada, where the foreclosure crisis is especially dire.