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Delays In Getting the Homebuyer Tax Credit

By
Real Estate Agent with Future Home Realty

As has been well advertised the $8,000 first time homebuyer tax credit was extended until April 30, 2010 and a new $6,500 repeat homebuyer tax credit was added.

Last year, homebuyers were allowed to e-file and would usually get the refund back within a few weeks.

Due to much fraud involved in claims for the tax credit such as IRS agents, more than 500 hundred people under 18, one of which was a child who was four years old, and repeat homebuyers claiming the credit illegally, buyers will now need to send in paperwork including form 5405, proof of residency, a drivers license and a signed mortgage statement.

The IRS took two months to create the form 5405 and now state that the refund will take approximately four months for the homebuyer to receive once all forms and documentation are received.

The IRS, the Obama Administration and Congress took a lot of heat about not having any checks and balances and allowing more than $500 million in fraud to take place, so it is understandable that they are playing it cautious now.

Hopefully, the government will go after the fraudsters especially the IRS agents who have absolutely no excuse for their actions.

The first time and repeat homebuyer tax credit expires on April 30, 2010 and the closing must occur on or before June 30, 2010 so if you are looking to buy a home, now is the time to do so. There is not much time left to purchase a short sale, though there is still plenty of time for bank owned foreclosures and normal sales.

Please contact me at 813-469-3163 or Jeff@MakeTampaYourHome.com with questions or for assistance.

Taylor Shults Philley
Austin Realty Firm - Austin, TX
Broker, Realtor , GRI

OMG.I took advantage of this myself and received the refund within a few weeks. This is definitely some added work for the home buyers.

Jan 17, 2010 11:32 AM
Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team
Ken's Home Team LLC. - Vancouver, WA
- SOLD IS OUR FAVORITE 4 LETTER WORD -

thank you I will tell all my closings this year about this

Jan 17, 2010 11:35 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

There always seems to be someone willing to cheat and receive a credit where it wasn't due BUT on the other hand, some rules should have been in place to avoid the cheating.

Jan 17, 2010 11:36 AM
Renee L. Norton
Birmingham, AL

Thanks for this info regarding the delay.  I'll pass it on to my buyers who qualify foe the credit.

Jan 17, 2010 11:39 AM
Jeff Launiere
Future Home Realty - Tampa, FL
Jeff Launiere

It is nice knowing about it in advance since so many of these buyers are counting on the money for furniture or appliances.

Jan 17, 2010 12:22 PM