so i bought a house in june.. now i get this property tax bill for $5,000... im not sure but werent those suppose to be paid in the closing costs??
p.s
i cant find the HUD-1
please help
2007-10-30 12:24:42 · 7 answers · asked by Foreign Girl 2 in Business & Finance ➔ Taxes ➔ United States
I don't know where you live but here in MA the tax bill is broken down into monthly increments and is part of your mortgage payment.
The bank technically own your home until you pay it off and they pay the taxes and you pay them back.
Taxes and interest are some of the things that they go over when you pass papers/close on your mortgage. Is it possible that the town you live in is sending you a duplicate bill?
If you have a HUD loan than call them tomorrow and find out what is going on and to request a copy of your mortgage, they should have it on file.
2007-10-30 12:30:42 · answer #1 · answered by New England Babe 7 · 0⤊ 0⤋
Property taxes are paid in advance. The tax bill you just received could be for 2008 tax year. If you pay it early in November, or December 2007 you can usually receive a discount.
Property taxes for 2007 are prorated on the closing statement. Call your attorney for another copy. You should have reimbursed the seller at closing for June-Dec 2007 property taxes since he paid for the whole year in January. You will need that tax amount paid because it's an itemized deduction on your 2007 income tax return. If you have a mortgage, points listed on the closing statement are also an itemized deduction. In January, you will get a 1098 from your bank showing the interest paid for the year which is also a 2007 itemized deduction.
If you pay the $5,000 property tax bill early, it will count towards this year's itemized deductions. If you wait and pay your bill in January, then it will count towards your 2008 return.
If the tax bill you just received has back taxes on it, you should contact your attorney as soon as possible.
2007-10-31 12:03:37 · answer #2 · answered by AngeloElectro 6 · 0⤊ 0⤋
There are a couple of possible reasons that you got this bill and a couple of ways to resolve this. You need to first call your lender and find out if you have and impound (also called and escrow) account set up. If they say yes, then tell them that you received a bill for 5k and need to know if they are paying this or if its your responsibility. It can also be a "supplemental bill"; this is different from your normal property taxes. You will normally receive a supplemental bill when you first move into a new property or if the city does work on your street, i.e. pave the road or install street lights. I am assuming that you do have an impound account since you are wondering why you received this bill. It will be either your normal property taxes and will be paid through your lender or a supplemental bill in which case you are responsible for them. Good luck.
2007-10-30 19:41:13 · answer #3 · answered by laguy82 2 · 0⤊ 0⤋
Generally property tax is prorated in an escrow. Either you paid part of the tax in escrow or the seller did. In any event, you are responsible to pay the current bill. There may be an impound account with your lender and what you have is courtesy copy.
2007-10-30 21:32:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
get a copy of the HUD 1 from the mortgage company.
2007-10-30 19:53:36 · answer #5 · answered by Ovrtaxed 4 · 0⤊ 0⤋
Check with your bank, you may have an escrow account set up to pay your taxes. If so, the bank will have you send the bill to them and they will pay it.
2007-10-30 19:33:32 · answer #6 · answered by Angie 6 · 0⤊ 0⤋
Do you have a mortgage loan with an escrow account?
2007-10-30 19:28:08 · answer #7 · answered by npk 7 · 0⤊ 0⤋