- March 10, 2015
- All Michigan Issuing Offices
- UNDERWRITING - Transfer Taxes on REO Sale Deeds from Freddie Mac and Fannie Mae
In furtherance of Stewart Bulletin MI2011007, please be advised that the United States Court of Appeals for the 6th Circuit issued an Order filed May 20, 2013, that Freddie Mac and Fannie Mae were not obligated to pay transfer tax under either the Michigan State or County Real Estate Transfer Tax Acts: MCL 207.521, et. seq. and MCL 207.501 et. seq. This decision overturned an Eastern District of Michigan, United States District Court finding that transfer taxes were required to be paid on sales of property by Freddie and Fannie to subsequent purchasers (REO sales). The Court of Appeals’ Order was not subsequently appealed to the United States Supreme Court making it current law.
Thus, on sales of property by Freddie or Fannie to a subsequent purchaser (typically after foreclosure of a mortgage), you are not required to collect transfer taxes on such deeds under either the County or State transfer tax acts.
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