Escrow issues for sellers can arise when closing near property tax due date

By August 20, 2012 Uncategorized

9 Comments

  • RIck says:

    If I wish to not escrow taxes in MD, would that cause my rate to go up? A lender is telling me that my rate would go up .25 if I wish not to escrow.

  • webmaster says:

    Yes, it is customary that a lender will charge a higher interest rate for the privilege of paying your own taxes. Remember, a lender has a vested interest in making sure real estate taxes are paid since real estate taxes are a priority lien over the lender’s mortgage lien. Because a lender is most likely going to sell the loan on the secondary market, a loan with escrow reserves is going to be more marketable than one without escrow reserves.

  • Craig Hawins says:

    Is it highly unusual for a title company to contact you months after closing stating you owe them money because the property taxes turned out to be higher than originally thought. Or, they had to pay unpaid taxes they weren’t aware of?

  • Stephen says:

    I am the seller and closed on the 14th January 2016 and was told they would overnight funds. I received an empty FedEx envelope on the Saturday the 16th when I say empty there was nothing in it. I called and left messages so did the realtor, I did receive an email apology but they explained it was a “clerical error”. With the banks closed on the 18th I am still waiting for my money who can I file an official complaint with? Thanks

  • webmaster says:

    Hi Stephen, While this wasn’t a transaction we were involved with, we’re glad to suggest a place you might start. The Consumer Financial Protection Bureau wants to hear about the experiences of homebuyers. You can share your thoughts here: http://www.consumerfinance.gov/complaint/

  • MB says:

    I closed in Sept 2015 and as previously stated and had to double pay, since the check my mortgage sent did not clear the county office when it was time to settle. Prior to settlement I told the title company that the payment was sent and was told they were aware, but since it hadnt posted that they had to collect at closing and would issue me a refund. I have yet to hear back after emailing them to verify when my refund would be sent to me. What should I do next?

  • webmaster says:

    Hi MB, it’s tough for us to offer specific advice for many reasons. This was not a case we were involved with, and we don’t know the all the details. You may want to pick up the phone and call your title company to see if they can help resolve the issue. If you feel you’ve exhausted all your options, you can consider filing a complaint with the CFPB or the Better Business Bureau. Thanks for your question!

  • Katie says:

    How can I get proof from the lender that they paid my property taxes for me?

  • webmaster says:

    Hi Katie, thanks for your question. You can call your lending bank’s customer service number and ask for the date of the most recent tax bill paid or go online and login to your account with the bank and review the most recent escrow disbursements.

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