Last night, the Senate passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569), an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010, to the date of enactment of the extension. National Association of Realtors members sent more than 250,000 letters to Members of Congress encouraging them to extend the program.
Additionally, Congress passed an extension of the closing deadline for the Home-buyer Tax Credit, the Home-buyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010, that have not yet closed. The legislation is designed to create a seamless extension; the new closing deadline for eligible transactions is now September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law. Extending the tax credit closing deadline will help provide additional stability to real estate markets across the nation.
This was crucial as we all worked so hard for our buyers to help them write contracts before the April 30th deadline… only to find ourselves out in the cold when it came to making the closing deadline of midnight, last night. Underwriting restrictions and backlog simply made that deadline a fantasy rather than reality for many. Another reason for delays in closing was inability to purchase flood insurance across the nation. For many of those in areas that mandate this purchase, their hands were tied and their transactions were unable to close.
Our political action committees across the nation (whether at a national, state or local level) worked hard to get our members motivated to send emails, letters and phone calls to our legislators to show them how important it was to our clients and fellow constituents, to get these matters taken care of NOW!
Looks like they listened….