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The US Senate voted unanimously to extend the tax credit closing date and the National Flood Insurance Program (NFIP) to September 30. According to the National Association of REALTORS, "After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer 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. 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.

Up to 180,000 home buyers will lose their tax credit through no fault of their own if Congress fails to pass an extension to the home buyer tax credit by June 30 when the closing deadline expires. According to estimates by the National Association of REALTORS® there are home buyers in every state of the union that will be impacted, from 390 in Wyoming to 17,700 in California. These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a workflow jam with lenders or other delays such as lapses in the National Flood Insurance Program, Rural Housing Service, and new home construction, and might not be able to complete the purchase of their homes by the current deadline. NAR issued the following state-by-state estimate of the number of home sales that would be delayed beyond the June 30 deadline (numbers are rounded to the nearest 10): Alabama, 2,590; Alaska, 830; Arizona, 5,440; A

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Yesterday, the U.S. Senate approved a three-month extension to the tax credit closing deadline, which would give buyers until Sept. 30 to close. It is not completely final since it is attached to another bill that still has to be passed by the House. The extension would apply only to buyers who met the April 30 deadline to have signed purchase contracts. NAR estimates up to 180,000 buyers who were hoping to close by June 30 and get the tax credit are likely to miss the current deadline, so the extension is essential.