A lot of investors have been using the Homebuyer Credit to help sell their homes.  If you combine owner-financing with a government program hat gives people $8,000, houses are pretty easy to unload!

However, some people are wondering how to make sure the buyer gets you the money when they receive the check from the IRS.

This is especially important in circumstances where the buyer can’t come up with the amount they will get with the credit at the time of the sale, so the investor would finance the difference until the refund arrives.  This is normally done with a small second mortgage.

The best way (though not a perfect way) to make sure you get the money is to provide a copy of page two of IRS form 5405 and point out where it says the buyer must live in the home for at least three years or they will have to pay it back.  Then you want to get them to use your tax preparer to file the return for their credit.

Nest have them meet with your tax preparer (a CPA, enrolled agent, or attorney) to have the power of attorney signed.  Then instruct your preparer to notify both you and the buyer when the check is received.  Then you can go with the buyer to pick up and deposit the check.

Additionally it is always a good idea to get a simple, separate form created and signed by all parties that spells out the agreement.

Now go sell some houses!