Wednesday, August 1, 2012

Suit Tags Freddie, Fannie For Alleged Wrongful 'Government Entity' Exemption Claim To Dodge Deed Recording Taxes Upon Taking Title To Foreclosed Homes

In Dayton, Ohio, The Associated Press reports:

  • County officials in southwest Ohio have filed a class action lawsuit against two mortgage giants they say owe millions in unpaid taxes.

    Montgomery County filed a federal lawsuit Wednesday that says Fannie Mae and Freddie Mac wrongfully claimed various exemptions to avoid paying transfer taxes to state counties.

    Transfer taxes are owed to a county when a deed is recorded. The lawsuit claims the companies didn't pay transfer taxes involving banks that foreclosed on homes and new homeowners. Officials say both companies filed for exemptions as government entities and other inapplicable exemptions for an unspecified time.

    The lawsuit involves most state counties. Summit County has filed an individual case.

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