This does not apply to the homeowners who choose to have a second home as a vacation home or investment property. If a homeowner has moved on and is not able to sell their previous principal residence, they can go to the City Hall and apply for this second home exemption. heir house has to be for sale and they cannot be renting it out. Also, they do have to apply for this exemption once every year; and, I do believe that they will be allowed to have it for up to three years as long as the same conditions apply.

Not only will this help these homeowners in their out of pocket property tax expenses; but, this also helps out with the resale of their homes. The fact that the tax exemption can stay in place, allows the new buyers to have the property tax relief right away upon the closing of their new home. Previously, the taxes would have gone up to the much higher amount (the non exemption amount) and the new buyer had to pay this higher amount through their first year of owning the home. This put more of a burden on the new buyers to have to pay more money for tax prorations and escrow accounts.

Buyers will definitely be more attracted to a property that has more manageable property taxes than one where they are going to encounter a higher tax burden for their first year of ownership. If you are in this two property situation, please apply for this second property tax exemption; and help yourself to getting your home sold.

This is one of the biggest and best benefits of home ownership versus renting. As a tenant, you might be eligible for a tax credit from the State of Michigan only; however, as a homeowner you get to use your deductions for your Federal Income Tax and still might be eligible for reducing your property taxes to the State.

Granted property values have really taken a hit over the past couple of years; and, we still might be in for more in the way of declining prices. However, the values will come back, they always do. We might not know when or how fast; but, we do know that they will start accelerating again.

Owning your own home is still the big dream for most people. There will be times that the values might not be where you want them; but, during those times, you still are able to get your tax benefits.

Financial Stability for Homeowners provides guidance on how to determine if a particular loan is owned or guaranteed by Fannie or Freddie and whether the homeowner may qualify under this program. Additional details of the program are expected over coming months, but this great news for homeowners, “under water.”