Well I guess it's too much to ask that her veto be over turned, hopefully when Granholm is out of office this will get reintroduced and signed by Snyder. It’s important to get the housing market moving. This one act could help spur the purchase of many more bank owned homes to good people who can fix them up and improve the neighborhood.
People have to understand that every $1,000 in taxes is roughly $17,000 in loan value. By allowing the Homestead Exemption to remain on the property when its being sold as a foreclosure means more people will qualify financially for that home it also means that people who otherwise wouldn't consider a non-homesteaded house on principle will now be able to consider more homes.
Its simple math, on a house with a taxable value of 100,000 the difference between homestead or non homestead is $1800.00/Year. That's a lot of money and can actually mean someone that’s wants to purchase a particular home may not qualify for it... so then its sits vacant or sells for less... either way everyone's property value is effected!
Is this a cure all? Of course not but it is a common sense approach to help move these homes.
As a Realtor I can't tell you how many times I've heard "I'd love to buy that home but... I can't afford the taxes". When the taxes are lowered to the homestead amount, more people will buy these homes and that helps everyone from the paint department at the hardware store to the neighbors concerned about vacant homes on thier block.