Due to the Worker, Homeownership and Business Assistance Act of 2009 signed into law on Nov. 6, 2009, the rules surrounding the first time home buyer tax credit have changed again. However, these rules only apply to homes purchased after November 6, 2009.
You: What if I purchased a home before November 6, 2009?
When did you buy it?
You: Between January 1, 2009 and November 6, 2009.
Then you might qualify for the 2009 version of the first time home buyer tax credit.
You: What about my friend who purchased a home after April 9, 2008 and the end of 2008?
Your friend could qualify for the 2008 version of the first time home buyer tax credit.
You: And what about the folks who purchased their home before April 9, 2008?
They get nothing.
You: Nothing?
Unless they purchased their home before June 30, 2005. Then, they might qualify for the enhanced credit just signed into law.
You: Really?
Really.
You: So there’s potentially something for everyone with this credit.
Except those who purchased their homes between June 30, 2005 and April 9, 2008.
You: What’s the government got against those folks?
Nothing, best I can see.
You: But they’ll be upset, don’t you think?
I do. Ironically, these are the people most likely to be upside-down (owe more than they’re worth) on their homes.
So I’ve opened the can of worms. Feel free to dive in below.
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Why is this so puzzling to everyone? Why would the government want people selling their homes when they are upside down? Unless they are only behind by $6,500, the credit won’t help them anyway. The people who owe $30,000 more on their home than it is worth are not going to help anyone by trading up to a new home. The best thing they can do is stay where they’re at and wait it out until they can sell their home and turn a profit on the mortgage.
Even those that are being forced to move (job relocation, etc) should consider renting before a trade-up buy in a new location, with or without the credit.
Closed on my house April 3, 08. Sometimes it’s best to just shut up and pay your bills. Eventually the market will pick up and it’ll have been a good investment. Gotta remember, investments take time to show a return (well, I keep telling myself that)