LANSING, Mich. (11/5/13)--
Ashley Ligon of the Michigan Credit Union League and Sara Dolan of East Lansing, Mich.-based Michigan State University FCU testify before the Michigan Senate Finance Committee on principal residence exemption legislation. (Photo provided by the Michigan Credit Union League)
The Michigan Credit Union League and Michigan State University FCU each recently provided testimony on principal residence exemption legislation before the state Senate Finance Committee, the league said.
Ashley Ligon from MCUL & Affiliates and Sara Dolan from East Lansing-based MSUFCU provided the testimony. The committee, chaired by Sen. Jack Brandenburg (R-Harrison Township), unanimously voted out Senate Bill 532 (Michigan Monitor Nov. 11).
SB 532 would allow financial institutions to maintain the current tax rate of a property when they take possession after a foreclosure. Under current state law, when a financial institution takes possession of a foreclosed property, that property automatically is taxed at the higher non-homestead rate.
Maintaining the current tax rate would reduce the financial burden on the institution during the extremely costly foreclosure process, said the league. This also would preserve the ability of many consumers to qualify for mortgages on properties where taxes are escrowed, something they may not be able to do under the new federal "ability to repay" regulations that require the cost of a higher tax rate to be factored in, the league added.
The league said it has worked with the bill sponsor and will continue monitoring the legislation as it moves through the Senate and to the House.