We are having problems converting our rental units into owner occupied units. Here in Michigan, we must pay 6% sales tax everytime a home is sold, even if it is repo’d, then resold again. Our renters typically can’t afford the 6% tax plus 10% down. So, with that in mind I have a couple of questions:
Has anyone used the new 10% tax credit to convert renters to owners? I would think the 10% credit would be a good sales tool.
Does the credit need to be repaid if the buyer defaults? If so, I would think that would be a good dis-incentive to default.
Assuming the buyer didn’t have 10% down, how could we get the 10% credit back to us as a down-payment, AFTER the buyers refund is received (probably several months after closing)?