May 21, 2009

Tip 17-2009: Real Estate Taxes and Mortgage Escrow

Real Estate Taxes and Mortgage Escrow:

For any closings occurring between (April-June) and (October-December) we are usually required by the lender to prepay the real estate taxes (due June 5th & December 5th). Depending on the date of the closing, there may be a problem with the current mortgage company also paying the real estate taxes from its escrow account. Accordingly, the real estate taxes may be paid twice (by the closing attorney and by the mortgage company from its escrow account). We try to prevent the second payment from the mortgage company, but sometimes we can not stop the escrow department or verify that the payment was made. If the taxes are paid twice, the second payment will be refunded but it may take a while for the second payment to find its way back to the client. Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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