Bob Stephens CRB e-PRO
Managing Broker
West USA Realty
An amendment that would have extended the closing deadline for the home buyer tax credit by three months failed on the Senate floor this week.
Senate Majority Leader Harry Reid (D-Nevada) proposed the extension, and the amendment itself was approved by a large margin last week as an add-on to H.R. 4213, the American Jobs and Tax Loopholes Act.
Republican senators, though, defeated the full measure on Thursday, for the third time, when Democrats moved to end debate and push it to a chamber vote. Reid has indicated that after three unsuccessful attempts, he plans to drop the matter altogether.
The amendment would have extended the tax credit deadline for closing on a home purchase to September 30. The current deadline is June 30.
The National Association of Realtors (NAR) says some 180,000 homebuyers who signed contracts in time will not be able to make the June 30 closing deadline, simply because of the time it takes for lenders to complete transactions. The trade group estimates that 75,000 of those who will miss out on the tax break are buyers of distressed properties.
NAR says its members have reported that as many as one-third of qualified applicants have already been notified by lenders that their mortgages will not close before June 30, due to the sheer volume of applications in the pipeline.
The tax credit amendment was just one piece of the multi-faceted bill that was primarily intended to extend unemployment benefits for Americans out of work for more than six months.
Republicans rallied against the measure on the grounds that it would have added $30 billion to the “already staggering national deficit,” they said.
This is good, but the key is that they needed to be under contract since April 30 and if they are having to wait five
Months to close! Wow! BUT it is a good move…too bad they didn't just bring back the actual Tax Credit. Oh well.
This will help those that are having challenges getting their deals signed off from sellers and selling banks.
Pamela Herrington, CRMS
Senior Loan Officer
NMLS# 209227
480-294-4989 Direct
877-455-4179 Fax
Pamela.Herrington@prospectmtg.com
www.MyProspectMortgage.com/PHerrington
From: Chief Operating Officer
Sent: Friday, June 18, 2010 10:26 AM
To: Chief Operating Officer
Subject: Senate Approves Closing Date Extension until September 30 for Home Buyer Tax Credit Program
**Distributed To: All Staff/All Locations**
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This article will give you a strategy guaranteed help you overcome the old pattern of procrastination.
Here’s the KEY: Pick a goal that is manageable for you
I was working with the client this morning named Steve who had been feeling stuck all week and unable to pick up the phone.
We identified that he clearly had an avoidance pattern going on. I asked that part of him to tell us why it had been preventing my client from making his prospecting calls.
It very clearly answered, “30 contacts today seems like too much. Steve will fail, and then he will be criticizing himself. I don’t want him to go through that pain so I’m stopping him from making the calls altogether.”
We did some negotiating with his “avoidance part” and it wasn’t long before a win-win agreement was reached.
The “avoidance part”, now called his Ally, was very agreeable to Steve making the calls as long as he would lower the number to 20 contacts a day when he sat down to prospect.
Steve knew that he could do 20 contacts today, he done it before and he felt very confident of his ability to do that.
Furthermore, a part of him that had been preventing him from taking the phone was now agreeing to be his Ally with a brand-new job description.
The deal was this: Steve’s part was to get on the phone and make 20 contacts a day. The Ally’s part was to:
1. Nudge him to get on the phone
2. Praise him for his efforts
3. Protect him from self judgment and criticism
At the end of the session, Steve reported feeling energized and highly motivated. We worked out some action steps and accountability along with a set of empowered beliefs. With his new and more realistic goal of reaching 20 clients instead of 30, the procrastination stopped.
Here’s a Tip: Procrastination is just another word for fear.
Next time you are procrastinating ask yourself these questions:
·What am I afraid of?
·What self limiting belief is driving me?
·What is a manageable action step?
Pick something you know you can achieve, take action, feel successful, and use that as a springboard for your future action.
I had to post this article by Dr. Maya Bailey, as this is one of the very important topics we discuss in my Career Enhancement Workshops. Where I try to hold you accountable, of if you will give you a "nudge" now and then. Hope you find great value in reading about this information that we have all heard before, but still have "moments" of procrastinating.
The Senate has amended a bill to give home buyers who were under contract on a home purchase by April 30 an additional three months to close the deal and claim the federal home buyer tax credit.
Extending the deadline for closing from June 30 to Sept. 30 would allow lenders more time to clear a backlog of 180,000 home buyers nationwide, said amendment sponsor Sen. Harry Reid, D-Nev.
The amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" -- which primarily extends unemployment insurance benefits -- was approved in a 60-37 vote Wednesday. The vote was mostly along party lines, with only four Republicans in favor and one Democrat opposed.
"While I am disappointed that more Republicans did not support this common-sense measure to strengthen the economy and reduce the deficit, I am committed to ensuring that more Nevadans and Americans can become homeowners and that this amendment becomes law," Reid said in a statement.
The House passed an earlier version of the bill in December, and the Senate approved its own version in March. The Senate is currently working on resolving differences between the two bills.
The National Association of Realtors supports the amendment, saying Realtors have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.
The amendment does not extend the deadline for home buyers to qualify for the tax credit, NAR said in urging lawmakers to approve it, but simply extends the deadline for closing transactions already in contract.
"Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs," NAR President Vicki Cox Golder said in a statement.
There has been some speculation that some home buyers will attempt to submit fraudulent claims for the tax credit by backdating documents showing they were under contract by April 30, and that extending the deadline for closing would expose the government to more fraudulent claims.