IRS: forgive the $7500 first time home buyers credit to people who went through a foreclosure and no longer own the home they put that money towards!
Why is this important?
I went through foreclosure (due to job loss) in 2008 on my $211,000 condo which I purchased and received the old $7500 1st time home buyers credit (to be repaid over 15 years as opposed to the recent $8000 one that did not have to be paid back). Now I owe the IRS the remaining balance even though all of that money went towards improvements of a condo that is no longer mine and -to add insult to injury- was recently sold for $75,000! As someone struggling to regain employment it is extremely frustrating and disheartening owing that much money on something I no longer have any ties to and I believe the many people in similar situations to mine feel the same way.
