Obama Extends Two Important Homeowner Deadlines

July 03, 2010

President Barack Obama on Friday signed two laws aimed at helping homeowners.

First, the President approved a three-month extension to the June 30 closing deadline for homebuyers trying to qualify for the Federal Home Buyers Tax Credit.

President Obama brings some relief to homeowners before the July 4th holiday.

The “Homebuyers Assistance and Improvement Act of 2010” now gives buyers who had a signed contract in place by April 30 until September 30 to close on that residence in order to qualify for a federal tax credit of $8,000 for first-time buyers and $6,500 for existing owners.

The extension comes after the National Association of Realtors warned that as many as 180,000 homebuyers could miss the June 30 deadline simply because of the sheer volume of people trying to close on time.

Second, the President signed the “National Flood Insurance Program Extension Act of 2010,” which retroactively reauthorizes the Federal Emergency Management Agency (FEMA) to provide new contracts for flood insurance through September 30.

The National Flood Insurance Program (NFIP) is a low-cost insurance program that allows homeowners and renters to buy flood coverage.

The program had been shut down for the last month, which has tied up mortgage closings in many flood-prone areas. The new bills allows FEMA to approve flood insurance applications and renewals that have been pending since the program stopped on June 1.

Since Hurricane Katrina, the NFIP has been renewed for only months at a time as legislators attempt to overhaul the program.

For now, nothing permanent, but at least American homeowners can breathe a little sigh of relief this patriotic weekend.

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