ReEconomist

Homebuilder Legal Troubles, Large and Small [Housing Tracker]

Regarding the first item with a county suing a developer, for anyone in a situation like this where there is unfinished construction, there is a Q & A with a lawyer on your what your options are for getting a resolution here UsHousingMeltdown.org

One of the non-legal options to explore is if your state has a contractor recovery fund. This is a fund to pay out judgments against builders for incomplete projects – when the builder is insolvent.

Homebuilders Try To Ride Tax Credit Wave [Housing Tracker]

If you have to give a tax credit to incentivize someone to buy a house, what the market is telling us is prices are still too high.

As Gato pointed out, the tax credit is really an interest free loan. There's a handy, free online directory of the new housing law where you can read or print out a few pages found at
ushousingmeltdown.org/...

The tax credit for first time home buyers is found on pages 628-637.