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DKF1016
"I got the Sugar" ..:)
Member since 5/05 1252 total posts
Name:
Gonnacatchapeacock
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Escrowing taxes at closing?
Does it pay to do this? I'd rather have my money making money for me than my money sitting w/ them and making money for them LOL......
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Posted 6/3/05 1:34 PM  |
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Kaydee
LIF Infant
Member since 5/05 102 total posts
Name:
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Re: Escrowing taxes at closing?
Yes, we did that and pay our taxes straight to the town twice a year. Why let the mortgage company hold the money when you could be gaining interest with the money in your own bank account?
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| Posted 6/3/05 2:12 PM |
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skew
LIF Adult
Member since 5/05 6794 total posts
Name:
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Re: Escrowing taxes at closing?
we did a no-tax escrow. i like to be in charge of my own money. not to mention i have heard endless complaints of escrow shortages.
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| Posted 6/3/05 5:52 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Escrowing taxes at closing?
This a really old thread, I'm just bumping it to add to the question instead of posting my own thread. 
DH and I have also decided to handle our own taxes & insurance instead of having it put in escrow.
I know I can do the insurance, but do I call the Tax Assessor's office to find out how much is due, and then pay directly to them?
Then bring proof that they were paid to closing?
I'm trying to push for a closing earlier in the month to avoid paying too much, based on some advice I read here.
Thanks ladies.
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| Posted 7/27/07 7:34 AM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Escrowing taxes at closing?
Posted by greenfreak
This a really old thread, I'm just bumping it to add to the question instead of posting my own thread.
DH and I have also decided to handle our own taxes & insurance instead of having it put in escrow.
I know I can do the insurance, but do I call the Tax Assessor's office to find out how much is due, and then pay directly to them?
Then bring proof that they were paid to closing?
I'm trying to push for a closing earlier in the month to avoid paying too much, based on some advice I read here.
Thanks ladies.
Where are you buying? If you are buying in suffolk the taxes were due the end of May and you will just adjust with the seller's at closing. If you are buying in Nassau the taxes were due in April which you will adjust with the seller also (April is school) and July (town) which the seller's also probably paid and you will adjust with them at the closing. If the seller's did not pay July then what will happen is the title company will pick up the taxes from you since you will be living in the home for most of the period and you will adjust with the seller in your favor to get back for the period of time they lived in the house prior to closing and any penalities that may be associated with it for being late. I wouldn't go to the town because it just makes it more confusing and you may be wasting your time given the fact that all the taxes should be paid to this point. The title company will handle any open taxes that may be found on the property--the other issue becomes if the seller's haven't paid their taxes all year and the other thing is that the town may not speak to you since you technically don't own the property yet.
Message edited 7/27/2007 10:21:25 AM.
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| Posted 7/27/07 10:18 AM |
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shiv
Twinsanity!!
Member since 5/07 4747 total posts
Name:
Shiv
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Re: Escrowing taxes at closing?
Did the sellers have to pay the full year of taxes in April? Or just 6 months of taxes? If they paid the full year in one shot does that mean you have to pay that at closing? that's alot on $$ at closing if full yr.
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| Posted 7/27/07 10:35 AM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Escrowing taxes at closing?
If the seller's paid April the next bill is October if you live in Nassau. If you close in August your bank may require that you pay the October tax to the title company and then you would have to pay the sellers from the date of closing through 12/31. Yes it could be alot of money especially since school taxes are the higher of the 2. We closed in April and we had to give the seller from the date of closing till the end of May and then give the title company the taxes for the 2nd half taxes.
remember though that if you are escrowing with the bank it would be more money.
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| Posted 7/27/07 6:29 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Escrowing taxes at closing?
Wow. I need to learn the ins and outs of taxes and how often you pay, if you could break it up, etc. I typically like to pay things like insurance policies in full on renewal but with thousands of dollars, I don't think I should!
It's Suffolk, by the way. Tentative closing request is September 1. We don't even have the inspection yet though so who knows.
Thanks for the info. I'm glad it's not something I need to figure out myself, although I want to be prepared for handing over mucho dinero.
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| Posted 7/27/07 6:34 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Escrowing taxes at closing?
If you are buying in Suffolk taxes are due in Dec/Jan and in May. the period runs from 12/1 to 11/30 of each year.
If you are buying in Nassau taxes are due 4 times a year
Town is due Jan & July for period 1/1 to 12/31
School is due October & April and is for a period 1/1 to 12/31 but you pay it at weird times.
If you close in Sept you will owe the seller's taxes from the date of closing through 11/30 and will not have to pay the title company for the December taxes you will get get the new bill at your new home. If you close in Oct though you may have to have the title company pick up the December taxes--it really depends on the bank.
In addition if you are buying in a village usually the bill is once a year and is due in June.
Hope this helps. I put a certian amount of money a month into ING and pay my taxes when they are due twice a year--my feeling is why should the town get my money earlier then they need to. With insurance it is difference there is a fee every month when you don't pay it in full.
Message edited 7/27/2007 6:47:35 PM.
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| Posted 7/27/07 6:46 PM |
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