Foreclosure in 92503>Question Details

Mrs. Love, Home Buyer in Village On The Creek...

If I have my home foreclosed on, what happens to the $7500 first time homebuyers credit I got?

Asked by Mrs. Love, Village On The Creek Condos, Bryan, TX Thu Jul 30, 2009

Do I have to pay it back when I can't even afford to keep the home?

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Answers

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Yes, if you received the $7500 first-time homebuyer credit, it must be paid back. This is paid back through your tax returns.

There may be special rules for someone losing a home to foreclosure. You need to consult a tax attorney to get answers to these questions.

For more info visit:
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
0 votes Thank Flag Link Thu Jul 30, 2009
This type of question should only be answered by your CPA or Attorney. If there are any Real Estate questions you may have, I will do my best to answer them, or find the answer for you.
Thanks,

Pepper Smith
(951) 789-1691
0 votes Thank Flag Link Thu Jul 30, 2009
Yes! You have to give that back. Even if you are not foreclosing, you have to pay that back in 15 years in 15 equal installations. $7,500 tax credit is for those first time home buyer who bought in 2008.

But if you bought in 2009, the tax credit is $8,000 and this does not need to be paid back if you live there at least 3 years, that means if you sell before 3 years then you have to pay that back.
0 votes Thank Flag Link Thu Jul 30, 2009
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