is there a government credit available for purchasing a house in preforeclosure? Helping the seller avoid

Asked by Marie, Staten Island, NY Wed Apr 9, 2008

foreclosure and bad credit?

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5
Anthony Licc…, , Staten Island, NY
Wed Apr 9, 2008
No their is not, at least not yet. When the U.S. Senate bill gets passed, in the form that they intend it , it will likely provide a tax credit. However, that remains to be seen
1 vote
Team Real Es…, Agent, STATEN ISLAND, NY
Tue Sep 16, 2008
I think what you mean is the "Debt forgiveness act of 2007" that was signed on December of 2007.
Prior to this, if a bank accepted less then what is owed to them on a short sale the homeowner would get a 1099 at the closing and would have to claim the differance between what they owed and the amount the bank sattled for as income on their taxes.The way that it works under this act is that the homeowner will be relieved from the tax liability.
0 votes
Robert Ferra…, Agent, Kailua Kona, HI
Wed Apr 30, 2008
I believe you are talking about a "Short Sale", a preforclosure sale where the lender agrees to take less than the mortgage amount to satisfy the note. While it seems like a sensible thing to do to save the lender the money they would spend on the foreclosure proceedings and get the property off their books, it doesn't work out that way.

I have an offer on a short sale, all cash, close in 2 weeks and the lender, Country Wide, hasn't even assigned a case number to the property yet. We've had the offer in for two months now.

Such purchases are done with conventional lending at this time. There is talk about the feds providing funds to local governments to purchase foreclosures but that hasn't happened yet. Work with a Realtor who is versed in short sales. aloha
0 votes
Trudy, Both Buyer And Seller, Bruno, NE
Fri Apr 11, 2008
The govt was talking about a bailout. Thats old news. There is nothing going. Although, I highly doubt they will provide "govt credit" . Instead, you should look into getting an FHA loan, they raised th limits.
0 votes
Zack, , Westchester County, NY
Wed Apr 9, 2008
God I hope not. My taxes fund enough BS already without helping out some idiot who couldn't figure out how much home they could afford.
0 votes
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