Get Ready to Rummble! (you need to read that in the old WWF voice.. has more of an impact..)
Minneapolis / St Paul Business Journal reports that Hennepin County is suing Fannie Mae & Freddie Mac for failing to pay deed transfer tax.
Hennepin County has filed a civil lawsuit against Fannie Mae and Freddie Mac, seeking more than $10 million, for allegedly shorting deed transfer tax payments to the state’s 87 counties, Hennepin County Attorney Mike Freeman said Friday.
At this point I am only speculating what actually happened here. According to the article, Fannie Mae and Freddie Mac were “shorting” Deed Tax payments to the Counties upon “Acquiring” the properties. So by that I would take that to mean that when they foreclosed on the property, they did not pay all or some of the State Deed Tax of .0033% in out lying Counties or .0034% in Hennepin County and Ramsey County.
So on a Home Price of $200,000, the Deed Tax would be $660 and that same Home in Hennepin or Ramsey County the Deed Tax would be $680.
What would the value be upon the Foreclosure? What the bank initially lent on the property, tax assessed value, or what is REALLY worth in today’s market? Who would determine that? Maybe that is the real battle here.
I will try to track this story as it progresses. I have a feeling this will be loaded with “Fun & Laughs” as these 2 entities duke it out while the only parties who will end up paying will be struggling taxpayers regardless of the outcome.
You can’t make this stuff up…