It’s mad dash to the finish line as the $8,000 tax credit for first time homebuyers expires in about six weeks on Nov. 30, 2009.

The National Association of Realtors today released a report that reveals existing home sales were up nationwide nearly 24 percent in September (compared to Jan. 2009). It’s the largest increase in more than 26 years, according to the Associated Press.

The primary reason for the surge?

First-time buyers are scrambling to take advantage of the limited time government incentive, which was introduced earlier this year to spark the flagging housing market.

Lawrence Yun, NAR chief economist, had this to say regarding the good news:

“Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home. We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Currently, there is no telling if the tax credit will be extended. However, there are several key Senate lawmakers who are lobbying hard to keep it alive and well into 2010.

We’ll keep you posted.

In the meantime, feel free to search Foreclosure.com for the best real estate deals in your area before someone else beats you to it.

“… any time that there is an opportunity to receive cash back, it tends to attract people that might have an intent to defraud the government.”

So says Linda Stiff, IRS deputy commissioner for services and enforcement, who is investigating more than 100,000 questionable applications from “first-time” homebuyers who want $8,000 tax credits for their recent property purchases.

Illegal immigrants, underage buyers (one as young as four years old), previous homeowners and other shady individuals among the 1.5 million looking to take advantage of the program have raised yellow flags at the government tax agency.

However, the IRS is quick to point out the many of those flagged for further inspection could be found to be “legitimate” when all is said and done.

Currently, the $8,0000 tax credit, which is a key piece of the landmark $787 billion stimulus package enacted earlier this year, is set to expire on Nov. 30, 2009 (it began, retroactively, on Jan. 1, 2009). It’s possible that the popular program could be extended into 2010 because thus far it has been a “vital part” of the national economic recovery effort in the United States.

However, if it is riddled with “fraud” and other problems it may make decision makers think twice about renewing it.

For more on the $8,000 tax credit be sure to check out our topic archive right here.