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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
if your bank was escrowing the taxes?
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Posted 8/19/08 4:43 PM  |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
We would have had to but, we chose not to escrow (mainly for that reason).
Our mortgage broker was on LI and he said that wasn't the norm but, our lawyer in Rockland said that was the way they handled it up there.
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| Posted 8/19/08 4:49 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
I didn't escrow but it seems odd to have to do that. The only reason they would need that in your escrow account is if taxes were only paid once a year and it was due the a month or two after your first payment.
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| Posted 8/19/08 8:38 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
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They call me "Tater Salad"
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
We didn't escrow. However, it sometimes works out that, between what you have to repay the owners for prepaid taxes, what you may need to cover the next tax payment, and what you need to escrow that you wind up paying an entire year's worth of taxes or near it at the closing. I don't think it's unheard of. I haven't heard of banks asking for an entire year's worth going to escrow only -- but I've heard that everything together can add up to about a year's worth. You may owe the sellers for taxes they've prepaid. You'll also have to escrow however many months (6 months, maybe?). On top of that, you may have to put more into escrow so that the bank doesn't have an escrow shortage after making your first tax payment. (If your taxes are due only a month or two after you close, you won't have paid the bank enough each month to cover that, so it will have to come out of escrow if you don't pay it at closing.)
I guess it's possible that the banks are asking for an entire year's in escrow alone - but I've never heard of that.
So, yes, it's entirely possible that you would pay a year's worth of taxes at closing if you escrow, but I don't think all of that would be attributable to just the escrow account.
Message edited 8/19/2008 8:57:22 PM.
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| Posted 8/19/08 8:56 PM |
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JennJay41
LIF Toddler
Member since 3/08 431 total posts
Name:
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
We put a whole year up at closing.
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| Posted 8/19/08 9:13 PM |
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JML83
LIF Adolescent
Member since 12/07 540 total posts
Name:
Lauren
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
we put up 4 months...not a year. Thats a lot of $$$!
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| Posted 8/19/08 10:13 PM |
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MrsPornStar
Partners in crime
Member since 10/05 14656 total posts
Name:
Mama
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by JML83
we put up 4 months...not a year. Thats a lot of $$$!
We also did 4 months. The only thing we had to pay for upfront for a year was our homeowner's insurance.
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| Posted 8/19/08 11:08 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by MrsPornStar
Posted by JML83
we put up 4 months...not a year. Thats a lot of $$$!
We also did 4 months. The only thing we had to pay for upfront for a year was our homeowner's insurance.
Was this just what went into escrow, though? Didn't you also have to pay any prepaid taxes per diem, along with your next tax payment?
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| Posted 8/20/08 11:44 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
my mortgage rep just told us we'd have to pay a year up front.
I think this in IN ADDITION to the school tax bill coming due 9/2 (though it's from July so seller will be owing us some $$ too)
what I am trying to figure out now is, if we pay ONE YEAR up front (2009) will we be ALSO paying the monthly tax amount on our mortgage as well next year....to fund 2010.
this is starting to make me ill.
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| Posted 8/20/08 11:50 AM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by Ophelia
my mortgage rep just told us we'd have to pay a year up front.
I think this in IN ADDITION to the school tax bill coming due 9/2 (though it's from July so seller will be owing us some $$ too)
what I am trying to figure out now is, if we pay ONE YEAR up front (2009) will we be ALSO paying the monthly tax amount on our mortgage as well next year....to fund 2010.
this is starting to make me ill.
Yes, you will still be paying the monthly payment to escrow for your taxes.
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| Posted 8/20/08 11:54 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by ali120206
Posted by Ophelia
my mortgage rep just told us we'd have to pay a year up front.
I think this in IN ADDITION to the school tax bill coming due 9/2 (though it's from July so seller will be owing us some $$ too)
what I am trying to figure out now is, if we pay ONE YEAR up front (2009) will we be ALSO paying the monthly tax amount on our mortgage as well next year....to fund 2010.
this is starting to make me ill.
Yes, you will still be paying the monthly payment to escrow for your taxes.
oy!!!!!!
doesn't this mean that my escrow acct will be super funded...will I get money back at some point?!?!?!?!?!?!
this effing sucks!
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| Posted 8/20/08 11:56 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
What does your good faith estimate say?
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| Posted 8/20/08 12:03 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by Kara
What does your good faith estimate say?
the good fait estimate states only a few months of taxes..
this new info was provided by my laywer...he says that's "how they do it" up there 
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| Posted 8/20/08 12:18 PM |
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seank80
Don't Taze My Dog Bro!!
Member since 5/07 2240 total posts
Name:
Sean
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
We put up 7 months of taxes at closing and out tax figure was 100 more on paper than it actually was. We called them about 20 months later for an escrow reassesment and we were cut a check for the difference. It was quite painless.
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| Posted 8/20/08 12:27 PM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
i think we only had to put up 4 months.
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| Posted 8/20/08 12:52 PM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
That's what we were told as well. Our mortgage broker was on LI and he said that isn't right, it should just be a few months while our lawyer said it needs to be a year.
That's the main reason why we decided not to escrow - we would've had to put up a lot more at closing and still pay an extra $500 or so each month on top of our mortgage payment.
Could you look into waiving escrow? I know things are tougher now but, it might be worth looking into.
Message edited 8/20/2008 1:27:10 PM.
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| Posted 8/20/08 1:26 PM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by ali120206
That's what we were told as well. Our mortgage broker was on LI and he said that isn't right, it should just be a few months while our lawyer said it needs to be a year.
That's the main reason why we decided not to escrow - we would've had to put up a lot more at closing and still pay an extra $500 or so each month on top of our mortgage payment.
Could you look into waiving escrow? I know things are tougher now but, it might be worth looking into.
ITA about waving escrow. Call me or FM me if you need help with this. 
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| Posted 8/20/08 2:11 PM |
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by Ophelia
doesn't this mean that my escrow acct will be super funded...will I get money back at some point?!?!?!?!?!?!
this effing sucks!
If your account is superfunded you will get a refund at some point within the first year.
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| Posted 8/20/08 2:12 PM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by csorisi
I didn't escrow but it seems odd to have to do that. The only reason they would need that in your escrow account is if taxes were only paid once a year and it was due the a month or two after your first payment.
ITA w/this. I live in Orange County, I waived escrow and we had no problems. Maybe Monroe is different from where you are buying, but I doubt it?
I had this happen recently with a different bank at a closing and the buyer flipped the eff out b/c no one from the bank told them ahead of time. The bank wants to make sure taxes are paid b/c a lot of folks who are in foreclosure are not paying their taxes if they waved escrow when they bought.
That means, the bank is responsible to pay taxes on the property. I feel like the bank is trying to cover their arse here IMHO. Why should you pay for someone else's past mistakes?
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| Posted 8/20/08 2:17 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
Posted by dandr10199
Posted by csorisi
I didn't escrow but it seems odd to have to do that. The only reason they would need that in your escrow account is if taxes were only paid once a year and it was due the a month or two after your first payment.
ITA w/this. I live in Orange County, I waived escrow and we had no problems. Maybe Monroe is different from where you are buying, but I doubt it?
I had this happen recently with a different bank at a closing and the buyer flipped the eff out b/c no one from the bank told them ahead of time. The bank wants to make sure taxes are paid b/c a lot of folks who are in foreclosure are not paying their taxes if they waved escrow when they bought.
That means, the bank is responsible to pay taxes on the property. I feel like the bank is trying to cover their arse here IMHO. Why should you pay for someone else's past mistakes?
now the bank is saying we'd only be responsible for 6 months, with the seller giving us money b/c they are paid in arrears.
I don't trust them. I am keeping myself with the belief that I will owe it all at closing.
We cannot waive escrow. I tried. we aren't putting 20% down...so it's a no go. 
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| Posted 8/20/08 2:24 PM |
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JennJay41
LIF Toddler
Member since 3/08 431 total posts
Name:
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
wait..... I checked with my DH, we put 6 months, not a year.
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| Posted 8/20/08 8:28 PM |
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jax1023
LIF Adult
Member since 3/07 1165 total posts
Name:
Jackie
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
They wanted 9 months in advance from us. Plus, here the tax bill only comes once a year, so we had to reimburse the seller for 5 months of taxes he had already paid. We would have to paid 14 months of taxes, but we chose not to escrow.
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| Posted 8/20/08 8:31 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Has anyone has to put up an ENTIRE YEARS worth of property taxes at closing
It depends on when you close- we closed at the beginning of may and the tax bill was due at the end of may. We had to put the second half of taxes in the escrow account at closing plus we had to pay the seller back for the remaining part of may they had already paid with the January tax bill.
I have never heard of putting the entire year in the escrow acc't though - do you have to pay the taxes all at once or is it split up into 2 payments where you are buying the house?
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| Posted 8/21/08 9:42 AM |
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