(Originally published July 5, 2010.)
On Friday, July 2nd, President Barack Obama signed the Homebuyer Assistance and Improvement Act into law, thereby extending the homebuyer tax credit deadline to September 30th.
Buyers now have until September 30, 2010, to close on a home sale in order to be eligible for the credit. The closing deadline was originally June 30, 2010. To be eligible, home buyers must still have gone to contract by April 30, 2010.
The amount of the tax credit remains unchanged. First time buyers can receive up to $8,000 and repeat buyers can receive up to $6,500 (both are still subject to income limitations).
The new law also contains additional provisions aimed at preventing tax credit fraud. Over the past year, there’s been a substantial amount of fraud and abuse within the program. Claims have been paid on houses purchased before the program started and for houses owned by someone else. The Inspector General also found that some 1,300 prison inmates, some serving life terms, had claimed and received more than $9 million in credits. The new legislation takes steps to resolve and prevent such abuses.
Since 1992, Warren Goldberg has helped thousands of clients own their homes, refinance their mortgages, restructure their debts, and invest in real estate. Warren is known for his wide knowledge of mortgage products and wealth-creation strategies.