Michigan - Governor Snyder signs new Principal Residence Exemption law change May 2012

Michigan - Governor Snyder signs new Principal Residence Exemption law (also called Homestead Tax Exemption) change May 2012 This is great news for home buyers in Michigan! Previously, if you purchased a home in Michigan, there was a May 1st yearly deadline to claim the Principal Residence Exemption (approximately 40% property tax savings yearly). The new filing deadlines are June 1st and also November 1st. What this means for homebuyers, is that the amount of taxes escrowed into your mortgage may be greatly reduced, giving you a lower monthly mortgage payment. Additionally, the new law allows foreclosing lenders to keep the homestead on a foeclosed property, so lenders for the new purchaser are using the lower tax rate to figure escrowed taxes. In the past, many buyers were turned down by lenders because their payment would be too high with the extra 40% taxes included in their mortgage payment. Good for Michigan!