An Illinois county has filed suit against government-sponsored mortgage giants Fannie Mae and Freddie Mac, claiming that the organizations failed to pay taxes related to foreclosure sales they conducted in Illinois.
Fannie and Freddie reportedly claimed that they were exempt from paying the taxes because they are part of the federal government, Illinois Watchdog reported.
Macon County, IL, filed a lawsuit in federal court Dec. 4 seeking payment of transfer taxes from Fannie and Freddie. “A transfer tax is an excise tax that has to be paid when a property is sold or transferred to a new owner,” according to foxillinois.com.
Despite their involvement in numerous Illinois foreclosure sales, Fannie and Freddie only paid the transfer taxes on several occasions “under protest,” claiming exemption by virtue of their status as “governmental bodies,” county officials said. ...More HERE
