Sunday, August 28, 2011

Michigan Deed Recording Official Tags Banksters w/ Suit Alleging Improper Exemption Claims To Dodge Local Taxes On F'closure-Related Realty Transfers

In Coldwater, Michigan, WTVB Radio 1590 AM reports:

  • The County of Branch and Branch County Register of Deeds Nancy Hutchins have filed suit in Circuit Court, alleging that nine separate mortgage companies and their business service providers have failed to pay appropriate fees and taxes on property transfers in the County.

  • Hutchins says review of county real estate records has shown a pattern of inappropriate claims for exemptions to state and county transfer taxes, primarily on sheriff’s deeds on foreclosure and the subsequent sale of those foreclosed properties. Hutchins is questioning the validity of claimed exemptions.

  • Transfer taxes are the monies paid when a new deed is recorded in the county’s Register of Deeds office. The taxes apply to the sale price of the property being transferred, unless it falls under $100. Many large-scale banks have used Fannie Mae and Freddie Mac to claim an exemption to pay the taxes by identifying Fannie Mae and Freddie Mac as government entities.

  • Hutchins says the issue has seriously affected the County Revenue stream, jeopardizing services that taxpayers rely on. She says it’s time for some of the banks and mortgage companies responsible for the nation-wide foreclosure mess to pay their fair share, instead of making county’s taxpayers bear all of the burden.

Source: Branch County Register Of Deeds Files Suit.

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