When I closed on my house, I had to prepay 5 months property tax, when/who do I get it back from.?

Question

I closed inMarch, and the mortgage company said that I would have to pay 5 months prepaid property tax upfront and pay into an escrow account every month. So, I have basically already paid for 10 months of property tax, but when it is due, there will be a bill for 6 months of property taxes, and an impound account with 11 months of property taxes already paid. So, id the mortgage company supposed to pay me back the extra money, or do they just send all the money in for property taxes, and I get the refund from the city. I just dont know how it works.

Answer 1

The good news is that your mortgage compnay will likely pay you interest on the money that they keep in your escrow account.

when the mortgage is paid off, any money that is left in the escrow account will be sent to you.

On my mortgage they do a review about once a year to change what part of my mortgage payment goes into the escrow account.

I find it a little annoying that they don't trust me to pay my property tax bills on-time... but when you need a mortgage, there's not much you can do. And paying a higher interest rate to keep from needing the escrow just wasn't interesting enough.

I hope that helps.

Answer 2

When your taxes are due, the mortgage company pays the taxes by withdrawing the amount of taxes due from your escrow account. The mortgage company does not send in any extra money that is in your escrow account.

The mortage company is allowed to hold several months of taxes in the escrow account. Every year, an escrow analysis is done. If the escrow account has more than the allowed extra money, you are refunded the difference. If the escrow account has less than the allowed extra money, your escrow payments will increase in order that the account be funded to the maximum allowed.

Although you were required to pay five month's taxes into escrow at closing, this may or may not be the amount required annually. Some mortgage companies require three months instead of five. Ask your mortgage company what the requirement is so that when you get your escrow analysis next March, you will not be surprised.

Answer 3

The money stays in the escrow accout and is paid out when due. You don't have 10 months in the account. The taxes are due every six months. So in April, your prepaid 5 months and the amount paid wioth the mortgage were sent to the taxing authorities.

Answer 4

it's held in escrow and you may or may not get it back once the mortgage company sees how much extra they are holding. Eventually you will get any extra in the escrow account, but that won't be till you either are responsible for paying your own taxes, or you sell the property and aren't responsible for paying taxes on it anymore. The mortgage company would be the one to refund any of it back to you. The city only knows how much gets paid to them, not how much is in the escrow account.

Answer 5

Nobody is going to pay it back to you. The amount you had to prepay should have been calculated based on the due date of the next tax payment and what period of time that payment covers - it's not necessarily the six months following the tax due date.

Companies usually reconcile escrow accounts annually, and if you are short, your house payment will go up, if you are way over, it will go down.

Answer 6

In California it incredibly is recurring for assets taxes to be prorated between the shopper and broking however the actual criminal duty for fee falls to the owner. You as they purchaser could get credit for the sellers area of the taxes as area of the escrow ultimate then whilst the April 10, 2013 installment is due you're able to pay all of it, partly out of you cash and something from the credit from the shopper. by way of fact the home is under shape the present tax invoice will cover the land merely. there will be a supplemental invoice for the area of the 300 and sixty 5 days that the domicile (advancements to the land) are carried out. you will owe all of that.

Answer 7

when purchasing a house the taxes prepaid should be shown on one of your closing doc. the hud 1 page. shows breakdown of all 'monies' placed on the table and how dispersed. at end of yr when you file for taxes with the yrend t/i form ad the hud1 to it. that is when the taxes are possibly reimbursed. taxes are usually paid up front and then the esc is set up to get ready to pay the next taxes due. at all times there is a min bal kept in the esc acct. lots of times the closing agt does not know a whole lot of this. best way to find out is to contact your mortg co and your local tax assessors office. .

Answer 8

if you have an escrow with the mortgage company they will refund your money.