For a short period of time in 2008 there was a tax incentive for new home purchasers. Purchasers during this time are required to pay back this credit through recapture via income taxation. Within a few months this recapture was discontinued and the new home buyers incentive became a grant that required no repayment. However, the people under the old system still are being forced to repay the money. The only difference between these like situated people is the month that they closed on their new homes.
The people subjected to the repayment requirement have lower home values due to this repayment since in the event of sale the entire amount must be paid in the same year as the sale. This coupled with the nation wide reduction in home values makes many homeowners stuck in underwater loans.