Harry Reid to the Rescue !!

Senate Majority Leader Harry Reid took an important step forward today to help recent buyers in the Las Vegas real estate market. To be fair, it’s not like he did this to help Las Vegas specifically, but rather he introduced an amendment that will help people nationwide with a potentially serious financial problem. As you might expect from a situation with a deadline that also involves a significant amount of money, there was a major last minute rush to qualify for the $8,000 federal income tax credit. This deadline came in two parts, and it is part two that could potentially cause some real problems. Currently, buyers that signed contracts by April 30th must close those escrows by June 30th in order to qualify for that juicy tax credit. This appears to be more and more problematic for two reasons. Reason #1 is that a significant number of these “by April 30th” transactions are short sales and it is doubtful there is enough time to finish completely by June 30th. Reason #2 is a matter the banks don’t really want to discuss. We are hearing from our bank contacts that the work load created by the last minute rush is so daunting that it’s unclear whether bank admin staff can finish all the work on time. Under an amendment offered by Senator Harry Reid, the closing deadline would be pushed back to Sept. 30th. Keep in mind however that this is merely an amendment to a very complicated piece of legislation at this point. Passage of this provision into law is still far from certain.

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