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Closed on home 8/7/2009, short sale, FHA loan, first time home buyers credit.  After initial disqualification for the tax credit, my CPA, has gotten qualification approval but still no refund.  As of yesterday, another request for information from the IRS was made for the same info that has already been sent(certified mail & signed for) several times before.  CPA is contacting advocacy group.  But, my question:  I need to sell this home and want advice on options.  Should I stop trying for the credit and put my home on the market? Or, put it on the market and price it $8000 below what we paid for it and keep trying for the credit. Or, put it on the market requesting a closing date after my 3 years of owning?  I understand that the credit has to be repaid if you sell before owning 36 months and that I can not rent it back to a potential buyer.  Please help!  Thanks!
  • January 21 2012 - Conway
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Answers (2)

Profile picture for Julann Carney
If you purchased the home as a short sale I'm hoping that you'll have some equity built up for the time that you have owned it. As far as the tax credit, that is a choice - if you continue to attempt to receive it & then sell you'll have to re-pay it as you are aware. When you filed your taxes, did you include a copy of the HUD-1 (final accounting paperwork when you closed?).
If you don't receive the credit then you may have the option of leasing the home if it does not sell in a timely manner. You need to contact a local Realtor to give you an idea of what houses have been selling for in your neighhorhood - that way you can have all information about what options you have.

Good luck!
Julann Carney
  • January 22 2012
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Profile picture for Cindy Quinton
And keep in mind that you can only sell the home for what the market will bear. Buyers will only be willing to buy the home for what they think it is worth (and if financing what an appraisal will say). They will not care if you recieve the $8,000 credit or not.

It seems like the best option, is to pursue the credit and wait to close until after 8/7/2012? Unless, you get a final absolute "NO" that you can't get the credit. You could still begin marketing it before that date, couldn't you?
  • January 22 2012
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