Missed tax credit a 'blessing in disguise' for some

Home Sale Hindsight

Q: We’ve heard close to 200,000 prospective buyers who were in contract to purchase a home in time for the April 30 federal homebuyer tax credit program are not likely to close by the June 30 closing deadline. How easy would it be to cancel a deal for buyers who miss the closing deadline? Would these buyers need some sort of special contingency built into their initial contract in order to squeeze out of the deal for the sole reason that they will not receive a tax credit, or are there other ways to cancel the transaction? –"Credit Checker," California

A: A timely question, yours. Yes, it’s true that the National Association of Realtors has estimated that 180,000 homebuyers who were in contract to buy a home in time to meet the April 30 contract deadline were on track to miss the June 30 deadline for closing the deal. But since you wrote, Congress approved — and President Obama signed — into law an extension of the closing deadline.