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WE NEED HELP - 1ST TIME HOME BUYERS AND NON-HOMESTEAD TAXES

By Michelle Gordon

Real Estate Agent with JH Realty Partners 6501309180

April 11, 2009 12:35 AM

I am writing on behalf of all 1^st time home buyers who are running out of time. Most of my clients are 1^st time home buyers of low to moderate income, while I am on the front lines of home buying I think there may be an issue that will slow down sales for 1^st time home buyers, that the State of Michigan may have forgotten to address.

While I understand why we have non-homestead taxes, in the current market we are in, I believe it is going to hurt us; more then help us right now.

Most of us are rushing to the finish line - May 1^st - for our closings for all our owner occupied pending sales. As it can really make a difference in the mortgage payment and for some they can not take the risk as if they do not close by May 1^st they would not be able to afford the mortgage payment. There fore not buying a home at all.

The one positive aspect of this market is 1^st time home buyers - especially those with families, homes have become more affordable and they can buy a great home, that they probably would not of been able to afford in a sellers market. However the non-homestead tax will put this to a halt.

Home sales are up in my territory and I would like to see this continue. I would like to see an exception for 1^st time home buyers; buying a Bank Owned Home - REO.

You may say file for the 1^st time home buyer credit and apply this money towards the mortgage. However many of these homes need work, inside and out. This money will be used bring the home up to date and fix any (or many) repairs that are needed.

Further more the buyer would not get approved for a loan for this particular home while figuring in these taxes as it would make the ratio to high, so penalizing the 1^st time home buyer.

I believe this is an important issue for all of us, weather you are buying a home or just a neighbor of that bank owned home.

Please HELP!

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Monica Ross

Lynda's Real Estate Service - Boyne City, MI

Michelle,

I totally agree with what you are saying, but you also must remember that if they are that close on finances, should they be buying a home? They may be the next foreclosure if any hiccup occurs in their life! Michigan does need an overhaul on their taxation system. Please be sure that you contribute to RPAC at MAR as our association is always trying to get legislation passed on these issues. Many Realtors do not realize the impact that MAR lobbyists have on the laws that are passed. They work for us so we have a good workplace to do business. They are our voice in Lansing.

The other thing we, as Realtos, can do is to personally contact our legislators to remind them how important this issue is. If there is enough "chatter" bugging these legislators maybe they will work on legislation to change property taxes.

Apr 11, 2009 01:54 AM

Michelle Gordon

JH Realty Partners - Ada, MI

Finding Your Place

HI Monica,

Thanks for the comment, but some of these homes are not "close" it is a difference of 300.00 to 400.00 a month........which is a lot when buying a 100,000 dollar home.

I have sent my opinion out to "all" concerned.........and hope action will take place. However worried I waited too late to go down this road.

Apr 11, 2009 02:02 AM

Cherry Wings Realty

Cherry Wings Realty - Traverse City, MI

Your Traverse City Michigan Realtor

Michelle:

I am a new realtor in MI (I had 10 years experience in Arizona) and the way properties are taxed here in MI is quite the eye opener. If you purchase a primary residence in June, you have to wait a whole year to be taxed correctly. The system is definately broken. I am happy to help you in any way I can to get this word out there to our legislators. It is not fair to any home buyer and it makes it very challenging to the first time home buyer.

Apr 11, 2009 02:09 AM

Tim White

Coldwell Banker Woodland Schmidt - Hart, MI - Hart, MI

Michelle - I heartily agree. I will bring this issue up with a couple of Michigan legislators I know, and spread the word as much as possible. I know in smaller townships, such as the one I live in, it often takes a long time to get the homestead credit applied. It happened to me personally, and took a lot of effort to get the back taxes credited for the period I had to pay non homestead and was living there. Most people won't or don't know how to fight for that. The system is definitely broken.

Apr 12, 2009 10:33 PM

Hi Tim,

Thank you in advance for any help you can supply. I would love for you to read my new post today, as that would be another thing to take to the Michigan Legislators as well..........a small mold problem, that will probably grow as fast as mold does!

May 15, 2009 12:58 AM

WE NEED HELP - 1ST TIME HOME BUYERS AND NON-HOMESTEAD TAXES

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