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Old 01-01-2018, 06:57 AM
8,140 posts, read 19,989,830 times
Reputation: 9382


Lenders do not set the monthly taxes to collect, unless it is new construction and estimated taxes are needed. If it's new construction, the title company or closing agent provides the lender the tax rate and the appraised value or sales price is used (lower of the two) for the tax calculation.

When the home is a resale or a refinance, every lender I have ever worked with relies on the title company or closing attorney to provide tax information for monthly collection. The title package, which includes the real estate tax billing is typically one of the last documents to be received, and usually, that's just before closing, so it's easy to see why a payment could go up at the last minute. Typically, up until that point, the taxes in the appraisal will be used when underwriting the file (unless new construction, then see first paragraph).

If I was told my tax figure was off by $80 a month, I simply would have explained how we got our current figure and when the final tax adjustment to the payment would occur. The loan officer, nor the processor has the ability to change the payment once a file has been underwritten - that falls under the closer. If the adjustment is significant, the UW must sign off on the revised payment.
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Old 01-01-2018, 08:32 AM
800 posts, read 416,532 times
Reputation: 2527
The difference is that you seem to be willing to address errors pointed out to you.

Regardless, I offered this as an example of possible predatory lending. Blameshifting will happen, of course... that's how they get away with it; I'm just saying how it can happen. I would not expect the average buyer to know the tax breakdown and exemption status of a home they don't own yet; I would expect at least one of the professionals in the industry to know it, however.
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Old 01-01-2018, 08:58 AM
6,859 posts, read 3,169,138 times
Reputation: 18928
Originally Posted by adjusterjack View Post
nobody duped you.

What you and everybody else seems to have overlooked is that the taxes on an improved property (after you built the house) were several times more than the taxes on an unimproved lot (no house on it).

You're the one who should have figured that out when you built the house and then refinanced.

All you had to do was check with the property tax agency.

But you didn't do that.

This is all on you.
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