Karen Nicolai, Hernando County Clerk of Circuit Court, has filed a suit against Fannie Mae and Freddie Mac after accusing them of not paying hundreds of thousands of dollars that were owed to Florida in property transfer taxes.
In a bid to force the mortgage giants to pay the money that is owed to Hernando Country, Ms Nicolai has filed a suit that she wishes to become a class action suit that involves other counties in the state of Florida.
Speaking about the move, Hernando County Clerk’s attorney, George Angeliadis, said: “At this point we do believe this involves more than Hernando County or even more than a handful of counties. We believe it involves multiple counties in the state and potentially all the counties in the state of Florida.”
A seller must pay a tax in order to transfer a property every time that a house is sold in Florida. This tax is based on the valuation of the property, with the amount working out at approximately $7.50 for every $1,000. Given the continued rise in foreclosures in the area, Hernando County believes this adds up to a significant sum that it has not received, and the County has filed suit for an unspecified amount in damages.
Fannie Mae and Freddie Mac were not available to comment on the situation or the law suit; however, it is believed that they are claiming that they are exempt from having to pay this type of tax due to their status as government entities. Ms Nicolai disagrees with this stance, stating that they are private corporations and are publicly traded.
