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Are mortgage companies allowed to pay property taxes late?

Posted on: 17th Jan, 2009 03:33 pm
A mortage company holding the lien on a rental property claims that they did not receive the bill for the 2007 tax until February 2008. I know for a fact, and in speaking to the property tax department, that the bills for 2007 go out the end of Oct toward the beginning of November. In doing this, the escrow account was wiped out for that payment and is now in a negative balance because they then paid the tax bill for 2008 in November..which is when it is supposed to be paid. They have put me in an escrow hole for $1200.00 which will have to be paid out over 12 mos (more money for them) or in a lump, in an attempt for us to keep the mortgage payment from going up too much. I was told once by a company that they are allowed make payments "late".
No, they are not permitted to pay the bill late. The excuse that they gave you is lame. At minimum, they could continue to pay the same amount that they paid in 2007.

As far as your escrow situation, that happens all of the time. You beat the system for a while. You can ask them to spread out the increase over 24 months instead of 12. At least you were getting away with a lower payment for a while.
Posted on: 17th Jan, 2009 06:18 pm
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