March 18, 2013 – (RealEstateRama) — With the passage of the Principal Residence Exemption (PRE) Enhancement legislation last year, lenders were able to retain the PRE on a foreclosed property, but they must still pay the 18 non-homestead mills in local school operating property taxes. There has been some concern from lenders and local governments regarding the arduous process of filing to retain the PRE on foreclosed properties and instituting the new specific tax. Many forego the cumbersome process.
House Bill 4135, sponsored by Representative Frank Foster (R-Petoskey) eliminates that requirement for the lenders to pay the 18 mils, while retaining Principal Residence status on the home. This legislation alleviates the “red tape” burden on lenders so that these properties can retain their PRE without interruption, providing quicker turnaround for these properties to get back on the market.
The bill is scheduled to be up for a vote in the House Tax Policy committee this week, and we will keep you updated as this bill makes it way though the legislative process.
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