David Keith : MAR/Granholm Kudos? I think not!

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MAR/Granholm Kudos? I think not!

By: David Keith
Thursday, April 10, 2008 2:14 PM

After reading this so called "great news" from MAR (Mich Assoc. REALTORS) yesterday it seems like another half ***** attempt at helping things out. This is my perspective on what I read yesterday.

One issue with it is the NOT being leased or avaliable for lease. A lot of sellers are turning to leasing as an option because their home won't sell. This does not change anything for them. They will still loose the homestead if they lease their home out. A large portion of the for sale listings are also for lease, they will loose the homestead too.

It also does not address bank owned properties which is what a major portion of the listings are these days. The homestead gets removed once it becomes an REO (because a corp now owns it), depending on what time of year it is, it could be awhile before a new owner can get a homestead back on the property. This is the issue that really needs to be addressed.

So it really only helps people out that have moved and can afford to keep their previous home until it sells. Which in my perspective is not many people....this is why there are so many foreclosures....duh. So many of the homes on the market you can look through the listing history, see that the owner tried to sell for a year or more, the house did not sell and it became a foreclosure. The owners were long gone by that time enjoying their new life somewhere else in the country.

Perhaps another move towards feeding the rich and eliminating a class of of people we like to refer to as "middle"? How do you see it?

Hats off to MAR and Granholm.....I think not.

Here's the email content that applies to the above;

"Yesterday, Governor Granholm signed 3 significant pieces of REALTOR® supported legislation. First, legislation enabling home sellers to retain 2 principal resident exemptions for property still on the market after the seller has moved elsewhere in the state. The signing of this legislation is a huge step in aiding struggling sellers who have had homes on the market for over a year and have lost their principal residence status on that property.
House Bill 4215, now Public Act 96 of 2008 sponsored by Representative Ed Gaffney (R-Grosse Pointe Farms) enacts that the seller can retain an additional exemption for up to three years on property previously exempt as the owner’s principal residence if the following circumstances are met:
the property is not occupied,
the property is for sale
the property is not leased or available for lease
the property is not used for any business or commercial purpose

Comments

Guest	MAR/Granholm Kudos? I think not! said: PingBack from http://emortgagerates.net/2008/04/10/margranholm-kudos-i-think-not/ April 10, 2008 12:45 PM
Member Since '06	Barb Van Stensel said: David, Granholm inherited the problem. However, with Michigan right now, the problem is massive and the worst in the country. Alot of the sellers are turning to "leasing" when it is actually a rent with option to buy. These "land contracts" do create a problem because lenders don't allow, as a whole, the sale of a property under the "rent to own" option or "land contract". Maybe there is an exception to the rule for Michigan, but I doubt it. As far as trying to help, one of the things that Granholm is trying to do is keep people in the Great State of Michigan! That's a plus and I give her a star for trying to keep people "home". I understand what the rules are and they aren't fair at all! My hometown is Grand Rapids, Michigan. Our second home is in Rockford, Michigan on an inland lake. This second home is now the main home for my parents. The second home area is one of the strongest towns in the area and is known for it's growing school system. Grand Rapids on the otherhand keeps trucking along but not as vibrant as I would like to see it. I can't believe how many businesses are shutting down, how people are being forced to move away from a great state like Michigan because they need a job. Some have come to Illinois and can hold on to their home in Michigan without renting and therefore being able to keep the exemption. Michigan has always had problems and will continue unless other businesses develop that can support the people in this great state. Maybe Michigan should consider becoming more of a resort state and push for the "winter wonderland", the water = the state as a whole has a lot of potential. But Michigan has really never bounced back during the oil crisis in the 80's. It should have been reviewed and dealt with back then but it wasn't. Who was the governor then? Where were the congressmen, senators and reps back then? I do not know this lady governor at all. However, as has been mentioned in national conversations, it starts back to the local front and not the upper office. Start making the local governmental representatives get on track! Michigan is very dear to my heart and always will be. I left Michigan during the oil crisis because I couldn't get a job back in GR. I was qualified but didn't have childen that depended upon me, so I didn't get the job. I was overqualfied in other areas. When it came down to getting a job back in the 80's, you needed to be a divorced mom with kids, a family with dependents, etc and I, while I qualified, the companies hired the people who needed the money the worst because they had others that depended upon them. You want to talk about fair?!! The issues for the REO and short sale properties have different basis problems in Michigan then in the State of Illinois. Every state is different. I wish that it all could stop, but it won't, unless we start making people in elected offices locally and then up the ladder be responsible in their thinking. To be challenged why they are thinking one way. For the Realtors in Michigan, you have a burden on your hands that I wouldn't wish on anybody. For me, I have been bringing in my investors to GR area to invest in these homes. I believe in Michigan. It's about keeping the small businesses running. It's about getting Detroit on track or making some changes. It's about alot of things, but don't shoot the governor when there are people who led to her making these decisions. I don't know what is right for Michigan, at this point. Does anybody? My grandfather, along with 9 other men helped develop Grand Rapids. There was accountability back then. These men knew what GR would be like 30-40 years later and it did happen. What happened to the vision? What happened? April 10, 2008 2:36 PM
Member Since '07	David Keith said: That was quite a mouthfull Barb. Not sure where to start with all of it. So I'll just start. Is it all of Granholm's fault.....no it's not. Michigan has been warned going back to 1950's that they need to deversify and not put all eggs in the automotive basket. I say 1950's because I read a recent article that included a post from an economist back then warning of the coming storm if they did not. Granholm has done nothing in her governorship to help anyone. She is not doing anything to keep people here. That is just simply not true. People are leaving Michigan in droves. In fact she has increased taxes, increased fees on thousands of items such as; plate renewals, driver license fees; professional fees etc. She moved a portion of our property taxes from winter to summer over a 3 year period creating an intrest free loan for the state at the expense of taxpayers. She recently tried to get a 2% service tax added to specific services that would have included real estate but they shot that down. A different version did finally pass that did not include real estate but it is a new tax none the less. We now have a new small business tax which is starting to show it's ugly face and harming many small businesses. There was an article in a recent Crains Detroit that spoke of one man's issues and how he is now responsible for an 8k increase in taxes which he would have used for Christmas bonuses etc for his employees. Instead he now pays the state of MI. Granholm is incapable of thinking outside the box. You being from Grand Rapids I would think you might be a * DeVoss supporter. I certainly was. While * would have inherited a mess, I think he could have done a little more than what's happening currently. Perhaps the next time around. Unfortunately Michigan is very much a democratic state and also a union state. It's really sad that people can't see past they unions and vote how they feel. My neighbor who is in a union regrets their vote to this day for Granholm. Business after business has left Michigan and Granholm has done nothing to try and prevent it. Opportunities to get businesses to come to Michigan have been there.....she's done nothing. In true Democrat style she has done nothing but raise taxes and come up with other creative ways to ensure new income for Michigan by gouging the middle class with new taxes and fees. The Michigan economy is a mess. Another mess is the Detroit mayoral issue with good ol' Kwame. She has the power as Governor to remove this idiot from office yet she does nothing. I understand there is a legal process but a lot of companies are pulling out of conventions etc etc which is costing the city and local businesses millions. Things will get better. I have seen a sharp increase in business since the new year as compared to the same period last year. Homes are moving everyday. My partner and I opened an office in Oct 07 and we are moving right along. How long will it be for Michigan to return is anybody's guess. It's just all very bad news currently with no solutions in site. The new legislation does absolutely nothing to help the current market issues. Well I shouldn't say it won't help anyone it will help a very very very small percentage of people. April 10, 2008 4:00 PM
Member Since '06	Barb Van Stensel said: Dave I'm trying this again. Michigan has some good men and women in office and some of them are democrats. Every Christmas season my Dad would transfer his work over to other appraisers and we headed down to Ft. Lauderdale. There was a group of us that literally occupied the hotel for 3 weeks. People from New York, but mostly Michigan and Illinois. There were a few dems from Detroit down there along with one Repub from Michigan. I/We learned alot from these men as they told us what was really happening. It is sad and I know where you are coming from. Granholm, I have heard alot but bottom is Chicago just jumped the seller's transfer tax from $1/$1,000 to $3/$1,000. Then our tax basis is the highest in the country. I walk into a 7/11 to get a Coke for $1.49 and end up paying $1.90 for it!!! You tell me where our money is going. It's not just Michigan. I was never a straight ticket voter because of the great senators, congressman, who we saw every Christmas time. I learned alot from them and they spelled out exactly how it was. My grandfather left about 10 file cabinets of his thinking about GR and I read every last one of them. He had a vision and so did those other 9 men. My grandfather passed away in 1960 and what these men invisioned came to be up until 1995. That is a vision. In my mindset I am thinking, "what next?" Is this part of the problem, no one is focused but floundering around aimlessly? I cannot dispute what you have written. I don't know the lady governor at all - my heart bleeds for Michigan. It is a sad, sad day when such a wonderful state is loosing some great momentum to make a difference and they are blindsiding themselves. Grand Rapids housing market has an average time of over 14 months, from what I am told. When I go home to visit, I have people that meet with me to discuss their lifestyle, retirement possibilities, etc. Most are in tears. Again, and I think you will agree that it is up to the people to raise a stink, if I can say that about what really should be done and start exposing it for what it truly is. I believed in what Gerry Ford did but I didn't agree with everything. But that man was the genuine article and when he died, it showed. His decision re Nixon - it was hard on him more then most know. I knew because my father consulted with him re real estate. Other things, he drew the line alot! So why aren't we doing that in Michigan? Maybe because the Michiganders are being beaten up so bad that to do anything more then to try and keep a roof over their heads is all they can muster?!! I am sad to hear even more of the ugly. April 10, 2008 5:05 PM