Buying a quick sale preforeclosure..?

My husband and I just got pre-approved for a mortgage loan about two months ago and we have been frantically searching ever since. A couple weeks ago I caught word that a house in the town we are looking in is going into foreclosure in the near future. So I looked up some stuff online and it turns out that the homeowner had just lost their court case against their mortgage company on 7/27/09. So thinking that they might be accepting offers for a quick sale prior to foreclosure, we went over and asked them about it personally. They said that they had some things to mow over the next two weeks but that we were the first people they would contact.

I checked out some public records regarding the house and it looks like they had purchased the house for $ 89,000 in ’99 when it was appraised for $ 112,000, and they currently have $ 70,000 left on the mortgage. However, since they had purchased it, she admitted that she had tried to start projects, such as redoing the kitchen flooring, and then stopped midway through and on numerous occasions called it a “fixer upper”. So it sounds like she hasn’t made any improvements, and if anything, has only brought the value down.

I know there are many factors that go into this, but since we will not be going through realtors if we do get the call back, what would be a rough estimate on an offer. I am currently a nursing student and my husband is still working his way up in his company and so as much as I would like to give her a high offer given her unfortunate situation, we really aren’t in the position to at this point, especially if it needs some repairs.

We are new to all of this, and would just like some insight from someone who has had some experience with quick sale foreclosures.

I was thinking the same thing about them not having the right to sell the property at this point. However, she stated that they gave her three options at this point, one of which was to sell the property herself.

Ive got a few questions about the 1st time home buyer tax credit, and I can’t seem to find the correct answer online.

I bought a house in july of 09, But I did not get a mortgage or loan for the house, It was paid for with cash. Does that matter? Will I still get the first time home buyer tax credit?

Next question: This one sound stupid, but ive ready conflicting facts posted on the the IRS page.
I bought a house in 2002 with cash, I sold it for a loss this year in june. In july I bought a new house with cash. So Im not really a 1st time home owner. BUT when the tax credit first came out, I read that the 1st time homeowner credit will apply to people who have not bought a house in the last 3 years (2006,2007,2008) , and bought a house in 2009. And If I remember right their was rules about if it was you primary residence. And in my case it was my primary residence.

SO to sum up my questions: If you pay cash for a house in 2009 will you still qualify for the 1st time home buyer tax credit? And If you bought a house in 2002 and sold it in 2009, and bought another house can you still qualify for the 1st time home owner tax credit?

Please only answer if you know the correct answer, And please don’t leave answers empty by only saying “NO” or “YES”
Thanks for your time!

Register New Account
Reset Password