Foreclosure in 85710>Question Details

Ooazwildcat2…, Home Owner in 85710

i want to foreclose on my house, I got the 8,000 tax credit when I purchased the house in 2009. If i do foreclose do I have to pay it back?

Asked by Ooazwildcat23oo, 85710 Sat Jul 2, 2011

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11
It is a Foreclosure, the tax credit incentive would be and should be the LEAST of your worries.
1 vote Thank Flag Link Thu Jul 7, 2011
Hello Home Owner,
According to the IRS, you must reside in the property a minimum of three years to retain the credit. It looks as if you will have to pay a portion back.

Here is a helpful link with information about the tax credit and the requirements:

http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Hope you find this useful.

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Sat Jul 2, 2011
Please be aware that you don't foreclose on your house, the Lender forecloses when you fail to make the payments. Yes, unless you have occupied your home for 3 years, you are liable for at least a portion, if not all of the $8000.00 tax credit you received.
0 votes Thank Flag Link Sat May 26, 2012
First, seek legal advice from a real estate attorney and a tax advisor.

You would most likely want to wait for 3 yrs to pass so you don't have to give back part of the $8000.

Sounds like to me that you should consider a short sale before you default and just walk away waiting for the lender to foreclose. Sometime lenders don't foreclose for a long time and you continue to be obligated for HOA fees, late fees and the HOA lawyer costs until they do foreclose. HOA debt does not go away.

If you qualify for HAFA , you may even be entitled to get "moving expenses" ranging from $2500-$35000 depending on your lenders. If you move out that option can go away. Usually the number is $3000, but in come cases Chase (if they are the actual investor and not just a processor) have paid $35,000, but you need to ask keep an eye open for their offer letter.

You may also be a better candidate for bankruptcy. Without all the facts and professional advice, you wont know.
Loren Hoboy-Realtor
CentralAZHomes.com
623-688-0004
0 votes Thank Flag Link Sun Mar 25, 2012
I want to foreclose on my house also, tired of paying for it when i could rent for cheaper, been saving my mortgage payments instead and bought a nicer car, i dont want to pay the home buyer credit either, o well i dont get much an my tax returns anyway
0 votes Thank Flag Link Sat Sep 24, 2011
First of all, you don't foreclose on your home; your lender does. Have you stopped making your mortgage payments? Do you have a hardship? Have you tried to sell your home? Have you tried to refinance your mortgage? From the wording of your question, you appear to have a cavalier attitude about your financial responsibilities. I suggest that you consult with an attorney who handles residential real estate matters to find out the ramifications of the actions you intend to take.
0 votes Thank Flag Link Thu Jul 7, 2011
There are so many issues with your question. 1. Why would you want a lender to foreclose on you? 2. Are you aware of the tax implications of Foreclosure? 3. Why not complete a short sale instead of foreclosure. 4. Do you have an accountant, whom would be able to give you TAX ADVICE not REAL ESTATE advise?

To answer your question about $8000 Tax credit you have to stay in home 3 years if not you have to repay in full. The IRS has really good resources for this info, here is a link http://www.irs.gov/individuals/article/0,,id=233589,00.html
but my suggestion would be to work on a short sale or something of that sort, it has less effect on credit, less negative effect on the neighborhood, it is better for everyone, and if you complete prior to Dec. 31 of 2012 the tax implications on primary residence are less. Again IRS has page for that Mortgage Debt Forgiveness Act...

Here is a resource for short sale help.
http://blog.house-guy.com/2011/06/lenders-give-deficiency-wa…

best of luck to you.
0 votes Thank Flag Link Thu Jul 7, 2011
Why do you want to foreclose on your home! It really is not an option without looking like a real schmuck! You made a promise to pay your mortgage, you wanted this property so bad then and made that promise. do you actually look at all your responsibilities in this manner. Get real, get responsible and pay your mortgage and stop looking for someone to tell you its okay or here's what you do! Foreclosure by the way is the choice of the lender not the loan recipient. And yes you owe the IRS because like the loan contract you didn't read the fors and the information attached to the tax credit!
0 votes Thank Flag Link Thu Jul 7, 2011
have been trying to foreclose onmy building for two years, bank and lawyers giving me the run around
0 votes Thank Flag Link Thu Jul 7, 2011
Ron, I'm not sure how your answer came from the question above. I see no evidence in the question of foul play without some serious assumptions. I agree with Laura's answer. IN addition, you may also want to seek the advice of a real estate attorney.
0 votes Thank Flag Link Mon Jul 4, 2011
If I understand you correctly; you bought the hpuse with the intention of taking the $8000 and letting the bank foreclose so that you could take advantage of the Bank too. Is that correct?

If that is true, you are guilty of FRAUD and maybe a few other things.

I will not contribute to your scheme and I will not wish you good luck.

You are the reason that the banks are screaming and probably will look for a Deficiency Judgement.

I hope I'm wrong.
0 votes Thank Flag Link Sat Jul 2, 2011
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