This is Part 1 of a 2-Part Series. Sadly, houses recently purchased with the $8,000 First Time Homebuyers Tax Credit are now starting to fall into default. Life events such as job loss, income reduction, injury, illness and divorce can strike anyone at any time, including those who hurried up to buy a home in time to pick up an $8,000 check. Not Enough Time To Build Equity These houses were bought in a declining market or at best in a market struggling to stabilize. Many houses were bought with very little down payment. In order to sell fast the price needs to drop to compete with all the other houses, which means more money needs to be brought to closing. What Happened to the $8,000? If the $8,000 was spent then it’s gone. If the $8,000 was socked away in savings, and a financial crisi... 10/31/2010