Relocating do I have to repay the first time home buyer credit

XYR03 · 06-12-2012, 01:02 PM

I'm sure there's someone on here that went through this situation. I am in the process of relocating for a job and want to sell my house through the relocation proess. The house was bought in Dec09 and will reach 36 months this Dec. If I was to sell the house before the 36 month period due to job relocation, do I have to repay the full amount or will it be a partial amount depending on the amount of months and loss on the house? I've been juggling rent and a mortgage for a couple of months now and its hurting my mod funds. Thanks guys!

Maestro · 06-12-2012, 01:19 PM

You would have to read your contract, but who gave you the FTH buyer credit, and I assume this was kind of part of your down payment. If your contract is good they should allowed you an out due to relocation or something similar. I once has loan that had what is called a early repayment penalty, and I moved half way through the contract period. However, my contract had a clause that said as long as I use the same company for the new home mortgage they would waive the fee. As it turned out I end up not using them for the next home, and got the Mortgage broker to pay the early repayment fee in order to get my business.

I can tell you it is not easy to manage a remote property if you want to rent it out. If you have family locally or property manager you trust it may not be worth renting it out. I did this once since the property was under water at the time, and I happen to have a friend who was a property manager and I paid her 10% to manage it and did so for 3 yrs until the market recovered this is far better than taking the loss.

TMNT · 06-12-2012, 02:09 PM

If you used the $8,000 Federal Homebuyers Tax Credit via the IRS, you will need to pay it ALL back if you move out of your home no matter if you move out at 35 months or 2 months.

I'm in the same boat so I can't sell/rent my place until March.

miiipilot · 06-12-2012, 02:28 PM

Quote:

Originally Posted by TMNT

If you used the $8,000 Federal Homebuyers Tax Credit via the IRS, you will need to pay it ALL back if you move out of your home no matter if you move out at 35 months or 2 months.

I'm in the same boat so I can't sell/rent my place until March.

Same boat here.

Yes, it needs to be your primary residence for 36 months or you will have to repay the $8000. Think I have till Sept.

GL

XYR03 · 06-12-2012, 03:15 PM

Quote:

Originally Posted by TMNT

If you used the $8,000 Federal Homebuyers Tax Credit via the IRS, you will need to pay it ALL back if you move out of your home no matter if you move out at 35 months or 2 months.

I'm in the same boat so I can't sell/rent my place until March.

Quote:

Originally Posted by miiipilot

Same boat here.

Yes, it needs to be your primary residence for 36 months or you will have to repay the $8000. Think I have till Sept.

GL

damn that sucks I guess we are all on the same boat...

Maestro · 06-12-2012, 03:21 PM

Oh, government money, yeah usually no deals there. I am not sure if you can keep it and rent it, if that will count. As it was said, it has to be a primary resident and you have to live there for whole 36 months. If you are relocating for a job see if they will pay for it.

As I said above I was relocating for a job and got them to agree to pay the early repayment if the Mortgage broker did not pick it up.

06-12-2012, 01:02 PM	#1
XYR03 Lieutenant Colonel 134 Rep 1,673 Posts Drives: Cayman S Join Date: Sep 2007 Location: Charlotte, NC iTrader: (6)	Relocating do I have to repay the first time home buyer credit I'm sure there's someone on here that went through this situation. I am in the process of relocating for a job and want to sell my house through the relocation proess. The house was bought in Dec09 and will reach 36 months this Dec. If I was to sell the house before the 36 month period due to job relocation, do I have to repay the full amount or will it be a partial amount depending on the amount of months and loss on the house? I've been juggling rent and a mortgage for a couple of months now and its hurting my mod funds. Thanks guys! __________________ [SIGPIC]2015-Cayman S (Can't leave bimmerpost) 2009-E92 M3 2005-E46 M3 1998-E36 M3 2007-E92 328i[/SIGPIC]
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06-12-2012, 01:19 PM	#2
Maestro Major 1092 Rep 1,268 Posts Drives: 2007 335i Sedan, 2021 X3 Join Date: Nov 2006 Location: Philadelphia iTrader: (0)	You would have to read your contract, but who gave you the FTH buyer credit, and I assume this was kind of part of your down payment. If your contract is good they should allowed you an out due to relocation or something similar. I once has loan that had what is called a early repayment penalty, and I moved half way through the contract period. However, my contract had a clause that said as long as I use the same company for the new home mortgage they would waive the fee. As it turned out I end up not using them for the next home, and got the Mortgage broker to pay the early repayment fee in order to get my business. I can tell you it is not easy to manage a remote property if you want to rent it out. If you have family locally or property manager you trust it may not be worth renting it out. I did this once since the property was under water at the time, and I happen to have a friend who was a property manager and I paid her 10% to manage it and did so for 3 yrs until the market recovered this is far better than taking the loss.
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06-12-2012, 02:09 PM	#3
TMNT Captain 182 Rep 872 Posts Drives: 330ci ZHP Join Date: Jan 2007 Location: VA iTrader: (0)	If you used the $8,000 Federal Homebuyers Tax Credit via the IRS, you will need to pay it ALL back if you move out of your home no matter if you move out at 35 months or 2 months. I'm in the same boat so I can't sell/rent my place until March.
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06-12-2012, 03:21 PM	#6
Maestro Major 1092 Rep 1,268 Posts Drives: 2007 335i Sedan, 2021 X3 Join Date: Nov 2006 Location: Philadelphia iTrader: (0)	Oh, government money, yeah usually no deals there. I am not sure if you can keep it and rent it, if that will count. As it was said, it has to be a primary resident and you have to live there for whole 36 months. If you are relocating for a job see if they will pay for it. As I said above I was relocating for a job and got them to agree to pay the early repayment if the Mortgage broker did not pick it up.
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