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Old 06-12-2010, 08:12 PM
 
Location: OHIO
23 posts, read 329,778 times
Reputation: 26

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Hello, maybe some of you mortgage experts out there can help me. I sold my house on 5/20 and paid off the mortgage. I was told at closing by the title company that I had close to $3000 in my escrow account and should be refunded that amount within 30 days. I was thrilled and immediately began making plans for improvements to my new house with this money. Well, today I received the refund but it was for only $498.00!

I was able to login into my old mortgage account online for and view the transaction history. It looks like on 5/18 (two days before closing) $2600 was paid to the county for taxes from the escrow. My county taxes were paid twice a year with this mortgage; in January and May.

Should I be looking for a refund from the county? Or am I SOL? I should have educated myself better regarding all this escrow business. I never thought much of it. Thanks for any help.
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Old 06-12-2010, 08:34 PM
 
3,576 posts, read 6,153,479 times
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Need more info.

What does your HUD-1 say about the real estate taxes.

I am assuming the $2600 they deducted is for July 2010 thru dec 31 2010. Or was it from Jan 1st-June 30th?

If that $2600 is for the backend of July 2010-dec 2010 and it's not reflected in ur HUD-1, than you will have to deal with the county. It's a pain in the butt to deal with the county for refunds.

The reason I know is it almost happended to me last year selling my house right around the new real estate tax due date. My agent said if The county would have taken money from my escrow I would have had to go directly to the county for a refund ad it could take 2-6 months for that money. So it's a pain if that happens.

So did you already pay real estate for the first part of the year or was this escrow $2600 taken out for the backend of the year?
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Old 06-12-2010, 08:51 PM
 
Location: OHIO
23 posts, read 329,778 times
Reputation: 26
I was just reviewing my HUD-1. Line 506 on the seller side says "2nd half 2009 taxes to County Treasurer". This is included in the section "Reductions in Amount Due to Seller" on the HUD-1. The amount is exactly the same as what the escrow paid on 5/18, ($2612).

My county property taxes are paid in arrears, I believe. There was also an adjustment on the HUD-1 for the taxes for 1/01/10-5/20/10 for about $2000, the time covering when I lived in the house in 2010.

So, perhaps I'm wrong, but it appears the mortgage company paid the property taxes for the backend of 2009 right before we closed and there was an adjustment on my HUD-1 for the same amount. So the taxes got paid twice?
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Old 06-13-2010, 07:30 AM
 
Location: Wake Forest, NC
835 posts, read 3,672,178 times
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Best I can tell it was just incredibly bad timimg- no one fault just coincidence. Contact the attorney who conducted the closing and they should be able to help you square things away because if anyone would be responsible it would be them.
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Old 06-13-2010, 09:25 AM
 
Location: MID ATLANTIC
7,846 posts, read 19,164,896 times
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I know it doesn't help, but duplicate payments happen when there are closings near the tax due dates. If in fact the taxes were paid twice, the county owes you the refund. They may not know where to find you. If there is an office near you, just go down there with your HUD and your mortgage statement. You could handle this by phone or email, but having been through this before myself, there was greater confidence with the personal visit. If you can't visit, telephone. Most taxing authorities refund the tax payer - you want to confirm this is the process where you live. If they refund the 2nd party that paid, you need to follow up with whoever was 2nd to pay.
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Old 06-13-2010, 10:15 AM
 
Location: OHIO
23 posts, read 329,778 times
Reputation: 26
Thanks everyone. I am going to follow up first thing tomorrow with the Title Company who handled the closing and then the County. Going to the office in person sounds like a good idea. I just hope they can refund me directly. Yeah, the timing was certainly bad on this one!
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Old 06-13-2010, 02:22 PM
 
3,576 posts, read 6,153,479 times
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Quote:
Originally Posted by penzey View Post
Thanks everyone. I am going to follow up first thing tomorrow with the Title Company who handled the closing and then the County. Going to the office in person sounds like a good idea. I just hope they can refund me directly. Yeah, the timing was certainly bad on this one!
Like I said in my post, almost happened to me last year. The title company was no help. My taxes ($7500) were due sometime between July-September 2009 and they pay it all at once from escrow. I was closing on my home in July 2009.

I always do my research. I asked the title company what happens if the money is taken out for the following year.

They told me it's out of their hands. They could check up to 2 days before closing. But once closing happens and everything has been wired, I would have to deal with the county directly.

It's a pain in the butt to deal with local counties these days. With budget defecits because of the economy it could take up to 6 months to get your money back. The county is going to do everything in it's power to delay giving you your money back. Why? Cause they probably already spent it.
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Old 06-13-2010, 05:32 PM
 
Location: South Dakota
733 posts, read 4,259,194 times
Reputation: 718
Quote:
Originally Posted by penzey View Post
I was just reviewing my HUD-1. Line 506 on the seller side says "2nd half 2009 taxes to County Treasurer". This is included in the section "Reductions in Amount Due to Seller" on the HUD-1. The amount is exactly the same as what the escrow paid on 5/18, ($2612).

My county property taxes are paid in arrears, I believe. There was also an adjustment on the HUD-1 for the taxes for 1/01/10-5/20/10 for about $2000, the time covering when I lived in the house in 2010.

So, perhaps I'm wrong, but it appears the mortgage company paid the property taxes for the backend of 2009 right before we closed and there was an adjustment on my HUD-1 for the same amount. So the taxes got paid twice?
Sounds similar to this jurisdiction. In the current year you are actually paying the taxes assessed for the previous year, i.e. 2009 taxes due and payable in 2010. Since you owned the house for all of 2009, you owe the taxes for 2009 - which are payable in 2010. The 2010 taxes, due in 2011, are pro-rated to the date you closed in 2010. Confusing, isn't it?

Last edited by windtimber; 06-13-2010 at 05:33 PM.. Reason: Typo.
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Old 06-14-2010, 09:05 AM
 
994 posts, read 3,616,844 times
Reputation: 360
I'm sure everything will get sorted out eventually. Nobody is entitled to take your money away.

This post reminded me why I don't use escrow account. If you can, try to rid of escrow account and budget yourself.
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Old 07-15-2010, 11:50 AM
 
Location: OHIO
23 posts, read 329,778 times
Reputation: 26
An update: I had to wait until the payment posted with the county, which a took a while, because the mortgage company used a third party tax payment company. After that happened I was finally able to send in the notarized refund request to the county the end of June. Today I found out they never got the form! It seems that due to the July 4 holiday and somebody being on vacation "some mail got misplaced".

The form is being resent today and the refunds coordinator has promised me she'll try to expedite the refund. We'll see. What a mess.
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