We’ve been following this story closely and promised to update you.

The news is good! A bill to extend the home buyer tax credit – one of two such proposals floating around Capitol Hill – passed muster with the senate by voice vote last night, and President Obama is expected to sign the extension into law by tomorrow, if not sooner.

The home buyer tax credit – which reimburses first-time home buyers 10% of their purchase up to $8,000 – was part of the stimulus bill enacted in February 2009.  The law was later expanded in November 2009 to included a $6,500 credit for home buyers who already owned homes.

To take advantage of the credit, home buyers needed a signed Purchase Agreement by April 30, and were required to close their loan by June 30. Unfortunately, the lengthy short sale process has thwarted many hopeful home buyers from closing by the deadline.

The extension now gives home buyers until September 30, providing those with signed purchase agreements another 90 days to capitalize on the credit.

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