Suit Alleges Banksters Stiffed County Deed Registry Out Of Million$ In Deed Transfer Taxes On Foreclosure Sales

In Ingham County, Michigan, Bloomberg reports:

• Bank of America Corp., Wells Fargo & Co. and mortgage servicers were sued by a Michigan county official who claimed they failed to pay millions of dollars in transfer taxes on foreclosure sales.



• The banks and other defendants were part of an effort to “inappropriately” claim state and county tax exemptions on “improperly filed deeds,” Curtis Hertel Jr., Ingham County register of deeds, said [] in a lawsuit in state court in Lansing, the capital city. Hertel also sued Federal National Mortgage Association, Federal Home Loan Mortgage Corp. and two law firms that handle foreclosures.



• “We didn’t specify damages, but I believe it’s in the millions for the county and tens of millions for the state,” Hertel said [] in a telephone interview. “We intend to fight for it.”



• The county claims that the banks would transfer ownership of a note to Fannie Mae or Freddie Mac to avoid transfer taxes in foreclosures, Hertel said. “Fannie and Freddie would foreclose and claim the exemption” on transfer taxes allowed for government entities, he said. As companies, not government entities, Freddie Mac and Fannie Mae aren’t eligible for the exemptions, he said.



• The official transfer tax rate for counties in Michigan is $1.10 for every $1,000 of value being transferred, he said. “I want whoever is responsible to pay the transfer tax.”

For the story, see: Bank of America Sued for Foreclosure-Sale Taxes in Michigan.