Austin Business Journal – by Michael DeMasi
Thursday, June 17, 2010, 12:38pm CDT

Homebuyers who needed to close by June 30 to qualify for a federal tax credit of up to $8,000 may get more time to finalize the deal.

The U.S. Senate Wednesday approved extending the closing deadline to Sept. 30, but the bill won’t become law unless it’s also approved by the House and signed by the president.

The measure is included in legislation that would extend unemployment benefits and close some tax loopholes.

The National Association of Realtors estimates up to 180,000 buyers are in jeopardy of not being able to close by June 30 because of delays processing mortgages. As a result, new buyers wouldn’t qualify for a tax credit of up to $8,000 and repeat buyers would lose up to $6,500 in tax credits.

Buyers had until April 30 to sign a purchase contract to qualify for the credits. They were given until June 30 to close on the purchase.

The extension to Sept. 30 would apply only to those who signed a contract by April 30.

The tax credit encouraged so many people to buy a house that mortgage underwriters, appraisers and title insurers are having a difficult time processing the paperwork in a timely manner, according to analysts.

Austin home sales increased 31 percent in April compared with April 2009, according to the most recent numbers from the Austin Board of Realtors.

“The considerable increase in sales and pending sales indicates increased activity among buyers trying to beat the April 30 tax credit deadline,” Austin Board of Realtors Chairman John Horton said in a previous report.

“Although the tax credit has expired, we are entering a growing economic, real estate and seasonal cycle which we hope will continue to provide momentum to carry our market upward.”