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(EMAILWIRE.COM, August 27, 2011 ) Detroit, MI -- Lawsuits are being filed in Michigan by County Register of Deeds alleging mortgage companies and their business agents and document preparation companies working for those mortgage companies and banks and have failed to pay appropriate fees and taxes on property transfers in the County.
Branch County and Ingham County Register of Deeds have filed lawsuits against the largest banks in the United States and against Freddie Mac and Fannie Mae.
Review of county real estate records has shown a pattern of inappropriate claims for exemptions to state and county transfer taxes, primarily on sheriffÂ’s deeds on foreclosure and the subsequent sale of those foreclosed properties. The issue is state wide and has not been addressed until today. Every register should check their records for such patterns.
Transfer taxes are the monies paid when a new deed is recorded in the countyÂ’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.
“This is money that should have been applied to the county’s general funds, which could have been used for public safety, health programs, or countless other public services,” said Ingham County Register of Deeds Curtis Hertel Jr. “Additionally, the state taxes collected would have gone straight to the school aid fund. It’s time for some of the banks responsible for the foreclosure mess to pay their fair share, instead of allowing our county’s taxpayers to bear all of the burden.”
There are many questions that need to be answered. Although there is an exemption from tax for transfers under $100.00, who decided to take those tax exemptions and who decided that a house that went for $70,000.00 in a sheriff sale is then transferred for a value under a $100.00, sometimes for $10.00 or a $1.00?
“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. The issue is state wide and has not been addressed until today. Every register should check their records for such patterns,” says Branch County Register of Deeds Nancy Hutchins
The official transfer tax rate for counties in Michigan is $1.10 for every $1,000 of value being transferred. So the sale of a $100,000 home would typically carry a $1,100 tax. State taxes on the same transactions stretch even further – $7.50 for every $1,000 of value being transferred.
It is unfair that the average Branch County property owner is required to pay transfer tax, while some mortgage companies donÂ’t pay.
Attorneys representing the Counties, The Home Defense League, PLC, are committed to finding the truth surrounding the exemptions taken and to return tax dollars to the Counties.
Daniel P. Marsh is an attorney who practices law in Troy, Michigan. After graduation from Thomas M. Cooley Law School in 1991, Daniel P. Marsh served as an attorney in the U.S. Army Judge Advocate General's Corps and as an officer with the rank of major in the Michigan National Guard. After serving active duty, he entered private practice, focusing on probate and estate planning and taxation. Visit http://www.danielpmarsh.com/ to learn more.
Contact:
Daniel P. Marsh, Attorney at Law
101 West Big Beaver Road, 14th Floor
Troy, MI 48084
Tel: 248-687-1600
Email: dan@danielpmarsh.com
This press release was submitted by Right Now Marketing Group, LLC
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