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If you have a
transaction that is going or about to go through escrow, the following
information may be important for you.
1. You should
contact your escrow officer or title company to find out if the property
taxes are open or paid. If there are any steps that are required to take
they will be able to guide you.
2. If a
current payment (Tax installment) wasn't paid then it MUST NOT be paid
directly. Instead you should prepare a CASHIERS CHECK or a MONEY ORDER for
the payment amount and payable to the stated county tax collector. This
payment should be forwarded to the escrow company at least 3 business days
before delinquency. This will allow escrow to verify the tax payment and
prevent delays of up to 6 weeks and possible double payments.
3. Any
installment of a new tax bill can be paid from the proceeds of a sale at the
close of escrow. However, there will be at least a 10% penalty if escrow
closing is after the delinquency date.
4. If either
or both payments can not be verified but seller claims they were paid,
seller will have to provide cancelled checks to prove these payments.
5. If the
lender has an impound account, taxes will be paid from that account prior to
the delinquency date. Note that if the loan is paid prior to the tax's due
date, the lender may apply the tax money they are holding to the payoff
amount and not to pay the taxes.
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