Title Group Calls for Support of Homebuyer Tax Credit Extension

The American Land Title Association is calling on its members to contact their elected officials in Washington to support an extension of the June 30 closing deadline for the homebuyer tax credit. A Senate amendment to the American Jobs and Closing Tax Loopholes Act would give buyers an extra three months to finalize their purchases, and ALTA is joining the National Association of Realtors and the National Association of Home Builders in supporting the rider. According to a Grassroots Action Alert to members, the group says that in markets with the highest volume of short sales, "it is not uncommon" for the closing to take up to 120 days. Consequently, the memo warns "the two-month window afforded by the homebuyer tax credit is simply not long enough for current market conditions in the most severely distressed markets." NAR has estimated that between 55,000 and 75,000 contracts may be unable to close by the current deadline, and ALTA worries that many of the pending short-sale deals could easily become foreclosures if the buyer fails to qualify by the deadline. ALTA's members handle the bulk of settlements in most states.