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To obtain first time home beyer credit

Posted on: 11th Sep, 2009 01:03 pm
my son matt, hesitated on buying a first home.
i (his mother) found a foreclosure at a great deal, and put in my name. matt then changes his mind and wants
the house. can we quit claim the house to a friend (we
paid cash for the house) then matt get a mortgage for
the house and get the tax credit???
how long does the process of quit claim deed take???
Nope

In the $8000 tax credit, there is a specific condition which disqualifies these kind of transactions.

Cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse
Posted on: 11th Sep, 2009 05:37 pm
Hi forsteyjohns!

Welcome to forums!

In my opinion, your son will be able to quitclaim the property to someone else and then your son can buy the property from that person. This may help him in getting the first time homebuyer's tax credit. However, the first time homebuyer's tax credit will get expired on 30th November, 2009. So, your son will have to close the deal before that. I don't think the process of quitclaim deed will take a lot of time. You will have to fill out the deed, notarize it and record it at the county recorder's office.

Feel free to ask if you've further queries.

Sussane
Posted on: 11th Sep, 2009 08:36 pm
I am not sure if the IRS or some one will not notice that
Posted on: 11th Sep, 2009 08:46 pm
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