A couple in Phoenix got some really bad -and really odd- news when they learned that Chase had foreclosed and sold their home.

Jeff and Yanthy Zerner were not behind on their payments. They were approved for a mortgage modification just days before they received a notice to vacate the property. When Jeff contacted the number he was given, he learned that the house had been in foreclosure, and it had been bought.

Great news! The $8,000 first-time home buyer tax credit has been extended.

The tax credit, originally set up as a no-interest loan back in 2008, was converted this year as a full tax credit as part of the stimulus package for "first-time" buyers only.  The new law extends the tax credit to all sales up to April 30, 2010, and extends the credit to existing home owners as well.

According to the Associated Press, the House voted 403-12 in favor of the law granting the extension.

(Reblogged from NOLO)

(Reblogged from CNBC.com)

The trouble for states and localities eager to leverage the Neighborhood Stabilization program is getting to the houses faster than investors and homebuyers.

Imagine a house built entirely out of Lego's.

Well, James May, host of the British TV show Toy Stories, went a bit farther than imagining it. He built it!

Using 3.3 million donated Lego bricks, May along with thousands of volunteers constructed a colorful two-story home.

Once you've searched through HUDforeclosed.com and found a listing that meets your criteria, once you've secured your financing and are contemplating making an offer, it is time to hire a good home inspector and conduct a thorough home inspection.

Whether you're buying a home for your family to live in or you're an investor, buying a foreclosure can be an incredible opportunity.

As you get ready to start the process, there are some important Do's and Don't's to help you succeed:

Do have a strategy

In cities across America, economists are talking about a real estate rebound. This may mean that, come January, the low prices you see today will be a thing of the past.

Thousands of investors are flocking to bank-owned homes in an effort to profit from this unique time in the market.

Since Barnie Madoff won't have much use for his Palm Beach, FL, mansion in the next few years, the U.S. Marshal Service has placed it on the market for a cool $10 Million.

The home, equipped with a $40,000 Steinway piano and a $35,000 Persian rug, will be one of the prize listings of Sotheby's International Realty.

The good news: Proceeds from the sale will go to victims of Madoff's swindles. A small silver-lining for one big cloud.