Tuesday, June 29, 2010

Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District spoke on the House floor today in support of legislation she cosponsored to extend the deadline for the first-time homebuyer tax credit for those who entered into a contract by April 30.  Below are her remarks.

“I rise today in support of the Homebuyers Assistance and Improvement Act of 2010.  The first-time homebuyer tax credit has helped bring stability to the struggling housing market in Southern Nevada.  In total, over 25,000 Nevadans have collected about $200 million from the credit which has dramatically reduced the state’s excess housing inventory.

“In Southern Nevada, short sales have become more and more common as lenders and owners are able to avoid the arduous and costly process of foreclosure, and buyers can purchase a home slightly below market value.

“Unlike a traditional sale of a property between an owner and a buyer, however, short sales must be approved by the holder of the mortgage.  In many cases, although a purchase price is agreed to by the seller and the buyer, the lender may not approve the sale for months.  Certainly this has been the case in Nevada.   As a result, many first-time homebuyers have entered into an agreement for a short sale prior to the April 30 deadline, but have not able to close on the purchase prior to the upcoming June 30 deadline.

“According to local experts, the Homebuyers Assistance and Improvement Act of 2010 before us now will extend to October 1 the date by which purchasers must close the sale of a home in order to obtain the homebuyer tax credit.  This will allow approximately 3,800 first-time homebuyers in Southern Nevada to receive the credit.  It is a fair solution that will help consumers who met all of the eligibility requirements for the credit but have had the timely processing of their loan held up through no fault of their own.

“So I thank the Chairman in his assistance in moving this forward.  I urge my colleagues to support the legislation and yield the balance of my time.”

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Tags: economy, housing