9/22/2009 11:09 AMJohn Oliveira wrote:
I have studied this quite extensively & have talked to my lawyer and accountant all about it. I am getting ready to convert all my lease options tenant-buyers to Contract for Deed / Owner Financing. The $8,000 tax credit can only be applied on a house when the buyer gets a HUD statement. If you sell your house with Owner Financing / Contract for Deed / Land Contract, you can get the tax credit money as part of the Buyer's down payment. The new buyer doesn't even have to pay it back.
This is what you do...
1) Find a investor friendly Title Company that will do Contract for Deeds. 2) Make sure the new Buyer doesn't owe any taxes for 2007 3) Make sure the Buyer has not owned a home in the last 3 years. 4) Make sure the Buyer understands that all the money has to go towards the down payment or you won't help them do this deal. 5) Close at the Title Co with "Owner Financing" through a Contract for Deed / Land Contract 6) Send the Buyer to your Tax Accountant with the new HUD statement and their 2007 tax returns. 7) Have your Tax Accountant file a 2007 Amended Tax Return and the form for the tax credit. It could take 6-8 weeks to get the money. 8) IMPORTANT - You don't want the IRS to send a check to the Buyer in 8 weeks and then have them forget all about you. They could cash the check and you wouldn't know about it until it was too late. 9) Get the check sent to you or to your Accountant. Do two change of addressees - 1) from the Buyer's old house to you or your Accountant & 2) another change of address for after you get the check, changing the address to the new home. 10) Take the check to the Buyer and make them co-sign over to you so you can deposit it. Reply to this
10/8/2009 6:24 PMJohn wrote:
Now is the time to buy a home, rates are a all time low, and new homes are at a rocket bottom price. Reply to this
I have studied this quite extensively & have talked to my lawyer and accountant all about it. I am getting ready to convert all my lease options tenant-buyers to Contract for Deed / Owner Financing. The $8,000 tax credit can only be applied on a house when the buyer gets a HUD statement. If you sell your house with Owner Financing / Contract for Deed / Land Contract, you can get the tax credit money as part of the Buyer's down payment. The new buyer doesn't even have to pay it back.
This is what you do...
1) Find a investor friendly Title Company that will do Contract for Deeds.
2) Make sure the new Buyer doesn't owe any taxes for 2007
3) Make sure the Buyer has not owned a home in the last 3 years.
4) Make sure the Buyer understands that all the money has to go towards the down payment or you won't help them do this deal.
5) Close at the Title Co with "Owner Financing" through a Contract for Deed / Land Contract
6) Send the Buyer to your Tax Accountant with the new HUD statement and their 2007 tax returns.
7) Have your Tax Accountant file a 2007 Amended Tax Return and the form for the tax credit. It could take 6-8 weeks to get the money.
8) IMPORTANT - You don't want the IRS to send a check to the Buyer in 8 weeks and then have them forget all about you. They could cash the check and you wouldn't know about it until it was too late.
9) Get the check sent to you or to your Accountant. Do two change of addressees - 1) from the Buyer's old house to you or your Accountant & 2) another change of address for after you get the check, changing the address to the new home.
10) Take the check to the Buyer and make them co-sign over to you so you can deposit it.
Reply to this
Now is the time to buy a home, rates are a all time low, and new homes are at a rocket bottom price.
Reply to this
John,
That is very good information, you have a great name in the Houston market as a lender.
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