Giving borrowers only 60 days to sign and close, especially in this real estate environment, wasn’t at all realistic
Pompton Plains, NJ (PRWEB) July 8, 2010
An ongoing poll on HSH.com’s blog reveals that visitors overwhelmingly supported the extension of the homebuyer tax credit’s closing deadline because they wouldn’t have closed in time without it.
Even before President Obama signed the extension into law on July 2, visitors to HSH blog voted in overwhelming support of extending the credit’s closing deadline for 90 days past the original expiry of June 30. The National Association of Realtors reported in late June “that as many as 180,000 contracts that were signed by April 30 might miss the June 30 closing deadline.”
In the blog poll, 92 percent of the 1,000-plus voters thought extending the date was a good idea, with some 77 percent noting that their deal wouldn’t have closed without it. A number of lenders and servicers reported to us that they had been working “nights and weekends” just trying to get these loans to the closing table, but still wouldn’t be able to close every deserving loan in time without an extension.
“Giving borrowers only 60 days to sign and close, especially in this real estate environment, wasn’t at all realistic,” said Tim Manni of HSH.com. “To penalize borrowers, who up to this point played by the rules, including getting their contracts signed on time, didn’t seem right. Our readers definitely expressed that.”
“This tax credit prompted us to search to buy in the first place. It would be grossly unfair to pull the plug on it because the banks are overwhelmed…,” wrote one reader.
The slump in home sales after access to the credit closed in April makes it clear that the market still needs these types of supports. So the question remains, can the housing market thrive without another tax credit, and will another be offered in 2010? Our 2010 Mortgage Rates and Mortgage Market Outlook examines the 10 most important factors that would influence mortgage rates this year.
This poll is still up and running until and we are still welcoming feedback on the issue.
Other recent polls on blog.HSH.com have included topics such as tax refunds, off-shore drilling and “green” home improvements.
HSH.com, Financial Publishers, has tracked the nation's mortgage market for homebuyers, homeowners and industry participants since 1979.