If you have a closing between now and the end of December, remember there may be an extra twist at closing that listing agents need to make sure their sellers understand.
For most of the year, pro-rated taxes due are paid out of the proceeds from the sale as defined by the payoff amount provided by the holder of the mortgage.
This time of the year, things are a little different.
In most cases where a homeowner has a mortgage, the lender will escrow their taxes through the year in order to make sure the yearly taxes are paid correctly in November. This time of the year, there is a gap between when a lender will roll up the escrowed funds to pay the taxes, send it to the correct county, and the county records reflect that the payment is complete.
Here is where the “twist” takes place. Usually by early November, the homeowner should receive notification by the holder of their mortgage that all the escrowed money has been rolled up and the taxes paid, but over at the county tax collector’s office, they do not show it has been paid yet.
There are a variety of reasons for this delay, but at the closing table we have to go by what the county tax records say, regardless of what documentation the seller’s mortgage holder provides.
We will send the payment for the taxes if at the time of closing the taxes are reflecting due and payable. If our payment arrives at the county first, the lender will issue the refund, or vice versa.
My Agent Greg 