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Can You Buy A Foreclosure AND Use the Homebuyer Tax Credit?
Can You Buy A Foreclosure AND Use the Homebuyer Tax Credit?
 
You hear all about the great deals people are getting on foreclosed homes lately.  There are several on the market.  The home on the left is for sale in Pelham, Alabama.  THIS ONE is a Great Buy at $299,900. Some are good deals and others are a nightmare.  Remember, foreclosed homes - which are homes that have been taken away from people who bought them and then didn't pay for them are sold AS IS.  Most are sold by banks and they just won't do repairs - that is why you get such a good price.
Many foreclosed homes are purchased by investors who fix them up to sell.  Since they don't meet the rules for the Home Buyers Tax Credit, they would not get the credit. But, anyone who meets the home ownership/occupancy rules can certainly take the credit.
If the investor buys the home first, and fixes it up, then turns around and sells it to YOU, then you can take the Home Buyer Tax Credit - as long and you meet the other ownership rules.
What are the ownership rules you say!! 
First off, you need ... more

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