September 28, 2010 – (RealEstateRama) — Beginning this Thursday, homeowners facing foreclosure or short sale of their property will no longer be subject to the state’s real estate conveyance tax, state Senator Bob Duff (D-Norwalk), Senate chair of the General Assembly’s Banks Committee said today.
“Vulnerable borrowers who are ‘underwater’ are even more disadvantaged in their ability to negotiate a solution to their financial problem with their lender because of the added expense of the conveyance tax,” said Senator Duff. “Especially in these tough times, with foreclosure rates as high as they are in our state and with families in every community facing mortgage troubles, the tax added insult to injury. People in foreclosure are often at an absolute low point, up against the odds, and this was an additional blow to those who are already down.”
The exemption takes effect on October 1, 2010, and applies to tax transfers of a seller’s principal residence when the transfer is a short sale as well as in lieu of foreclosure and foreclosure by sale.
Public Act 10-1 was approved 32 to 4 in the state Senate and 129 to 9 in the House of Representatives during special session on June 21, 2010.
It was signed into law by Governor M. Jodi Rell on June 22.
Contact:
Press Aide
Jaclyn Falkowski
860-240-8671
Jaclyn.Falkowski (at) cga.ct (dot) gov
