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lulugrrl
My 3 Blessings
Member since 3/06 6551 total posts
Name:
L
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Spinoff to closing costs...taxes
how does that work, I just sold my house, and they paid me from Feb. until May, which is what I prepaid. Does this mean that since I am closing in April, I will prob. only pay them April May (this would be good since taxes are HIGH)
Or do you pay 6 months up front???
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Posted 3/7/07 10:07 AM  |
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: Spinoff to closing costs...taxes
I think you usually paid 6 months up front.
We didn't pay taxes at our closing to the seller cause he never paid them in the first place, so he took care of the late fee and we had $$ in escrow to pay the taxes.
ETA: Just ask your lawyer - he/she should be able to advise you what to expect.
Message edited 3/7/2007 10:10:07 AM.
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| Posted 3/7/07 10:09 AM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Spinoff to closing costs...taxes
Posted by lulugrrl
how does that work, I just sold my house, and they paid me from Feb. until May, which is what I prepaid. Does this mean that since I am closing in April, I will prob. only pay them April May (this would be good since taxes are HIGH)
Or do you pay 6 months up front???
You will pay the seller for the one month and then you typically put 6 months into escrow.
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| Posted 3/7/07 10:18 AM |
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MSeid
LIF Adolescent
Member since 11/05 805 total posts
Name:
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Re: Spinoff to closing costs...taxes
You will pay the seller for the one month and then you typically put 6 months into escrow.
This may be a very silly question, but the 6 mths put into escrow means what? We're paying an additional 6 mths of taxes on top of what we will have to pay? What does that extra 6 mths go towards?
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| Posted 3/7/07 10:40 AM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Spinoff to closing costs...taxes
Escrow is a holding pen, essentially. The bank holds the money and then pays the taxes for you (from the escrow payments).
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| Posted 3/7/07 10:56 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Spinoff to closing costs...taxes
Posted by MSeid
You will pay the seller for the one month and then you typically put 6 months into escrow.
This may be a very silly question, but the 6 mths put into escrow means what? We're paying an additional 6 mths of taxes on top of what we will have to pay? What does that extra 6 mths go towards?
Its not an extra 6 months- you are just prepaying 6 months of taxes and then the bank will send out the tax payment for you.
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| Posted 3/7/07 10:59 AM |
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NJmom
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Member since 8/05 4987 total posts
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Re: Spinoff to closing costs...taxes
edited: sorry, i just realized i misunderstood your question
Message edited 3/7/2007 11:14:33 AM.
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| Posted 3/7/07 11:12 AM |
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lulugrrl
My 3 Blessings
Member since 3/06 6551 total posts
Name:
L
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Re: Spinoff to closing costs...taxes
Posted by ~Colleen~
Posted by lulugrrl
how does that work, I just sold my house, and they paid me from Feb. until May, which is what I prepaid. Does this mean that since I am closing in April, I will prob. only pay them April May (this would be good since taxes are HIGH)
Or do you pay 6 months up front???
You will pay the seller for the one month and then you typically put 6 months into escrow.
Bummer, the taxes are pretty high on this house, they never greived, or applied for STar, although we had them apply before the Feb. 28 deadline, it means nothing for closing. I am scared to find out my closing costs. 
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| Posted 3/7/07 11:28 AM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Spinoff to closing costs...taxes
You will pay the seller from the date of closing till the end of the tax period which will be may 31st. Then you will probably have to give the title company the may taxes because the bank is going to require it.
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| Posted 3/7/07 12:17 PM |
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MrsPowers
So blessed!
Member since 11/06 10348 total posts
Name:
Ivelysse
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Re: Spinoff to closing costs...taxes
We are going to have to pay 6 months of taxes. I would check with your lawyer and your bank. They would know best.
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| Posted 3/7/07 5:02 PM |
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