I am writing on behalf of all 1st time home buyers who are running out of time. Most of my clients are 1st 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 1st 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 1st - 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 1st 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 1st 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 1st time home buyers; buying a Bank Owned Home - REO.
You may say file for the 1st 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 1st 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.