You won’t lose your tax credit because your lender and lawyer were too busy
As the deadline for tax credit collectors to close drew near, it became increasingly clear that lenders and closing offices could not handle the pace. The frenzy that real estate agents were handling in March and April then went into the loan pipeline where it quickly overflowed. There’s a backlog of 180,000 homebuyers nationwide. If their closings were delayed beyond June 30th, the borrowers were out of luck for collecting their credits.
Cue Senator Harry Reid, (Democrat from Nevada,) sponsor of an amendment that gives these borrowers and extra three months to close. Now, lenders, lawyers and title companies have until September 30th to get those titles cleared and get the mortgages closed. A sigh of relief is heard across the land.
Although I am not a fan of this credit, I do think it is unfair for borrowers to lose it because their attorney was too busy to meet the deadline.
I only had one instance where the credit came up regarding a closing. A seller’s attorney asked me -- through the seller’s agent -- whether my client was applying for the credit. The reason for the question was because the seller’s attorney found a title problem. He needed to know if he was under the gun to get it cleared up before the end of the month. As it turned out, he got it cleared and we closed on time.
I am a “belt and suspenders” type of gal. When my clients were going under agreement before the April 30th deadline, I kept all the closing deadlines well ahead of June 30th. I expected a madhouse, and we got one!
Did you cut it close? Will this extension save you from losing your tax credit?
