Rumors have been flying around Washington and all over the internet about a *possible* extension to the 2009 First Time Home Buyer Tax Credit. Some government officials are even trying to raise the amount to $15,000.
However, there is an old saying about having a bird in the hand beats two in the bush. I had put up an article on the credit back in February of this year that attracted quite a few comments. The majority of the comments lately has been about waiting for their credit and the response of the IRS personnel answering the phones. It seems the IRS is completely buried in amended returns for the credit and has had to implement fraud screenings due to the amount of fraudulent claims they have found. The reason I'm bringing this up is that it can't help but impact the decision of the government to continue this credit or do something else entirely.
Foreclosures are still up and there are many Las Vegas homes going into foreclosure every month. The economy is on the road to recovery, but the housing market is a pillar of that recovery and is still not on an upswing. Bottom line, if you are thinking about buying a home or condo in Las Vegas and can claim the credit, why gamble on it being extended?
The deadline for the First Time Home Buyer Tax Credit is November 30th. Given the extended length of most escrows (unless you are paying cash), you really should have your offer accepted by no later than mid October and even that is pushing the envelope. I've talked to plenty of Realtors around town and most are telling me that the typical bank owned home takes about 45 days or more to close, not counting short sales. If you are trying to buy a short sale, expect the wait to be even longer.
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