200,000 Buyers May Lose $8,000 Tax Credit

Nearly 200,000 homebuyers could lose out on the $8,000 tax credit because they can't get deals done by the Jun 30 deadline.

What did they do wrong? They tried to take advantage of the distressed properties flooding the market.

For example, many are trying to take advantage of short sales, buying from sellers who owe more on their mortgage than the home is worth. In these deals, the lender has to agree to forgive the remaining debt, and that can take time -- at least two to three months from the time an offer is made until lender approval. And that assumes a relatively clean deal, in which there's no second mortgage. If there are any complications, expect six months or more.

Read full story at CNNmoney.com

Time Running Out On Short Sales

For a first-time home buyer who wants to take advantage of the $8,000 tax credit, steer clear of short sales - there simply isn't adequate time to pursue this kind of home and close by the Nov 30 deadline.

Short sale homes take a considerable amount of time to close. There is a significant wait time in receiving a response on any offer, then even more time involved in actually closing on the home. Total wait time is unique to each home, but typically is several weeks to a few months.

As a smart alternative, focus on bank-owned homes or ‘traditional’ homes that can respond in a timely manner and can close within 30 to 60 days. You can then be certain that you will be able to take advantage of the $8,000 tax credit available to you as a first time home buyer.

$8,000 Tax Credit Ends Soon

From CNNmoney.com

There's barely three months left before the $8,000 tax credit for first-time buyers ends - and it can take that long to close on your new home.

$8,000 Down Payment Assistance

From Orlando Sentinel.com

Starting today, Florida hopes to stoke its real estate market by becoming one of the few states to offer $8,000 in down payment assistance to qualified homebuyers so they can benefit upfront from a new federal tax credit.

$8,000 Fast Cash For First-Time Homebuyers

From CNNmoney.com

There is one big obstacle for many first-time house hunters looking to take advantage of the market: cash for a down payment.

As part of the stimulus package, Congress created a refundable first-time homebuyers tax credit in hopes of helping on-the-fence buyers to take the home-purchase plunge. But buyers couldn't collect the $8,000 credit until tax time, rather than at closing time when it's needed.

First-Time Homebuyers: $8,000 Tax Credit

A tax credit of up to $8,000 is available for qualified first-time homebuyers purchasing a principal residence this year.