Pre paid taxes on a refinance question.

2 Replies

Hey guys. I just signed the papers on a mortgage refinance and in the prepaid column it has 3 months of taxes and in closing costs it has 2 months taxes which will go into My escrow account. The notary that did the closing said to check with my old lender if they paid next quarters taxes already and they did in fact pay them 2 days ago. I printed the page that shows it. Does this mean the 3 months prepaid on the refinance will pay the town the same quarters taxes again ? The notary said I should get proof that they’ve been paid and demand they remove it from the cash to close amount before I wire the money or blow the deal up. Thoughts ? 

I am really surprised the Notary provided this information as that really isn't their job, in fact, I would be led to think they would get into trouble about this information. Regarding the collection at this point, it is a done deal, unless the taxes are an EXTREME amount to be paid for those 3 months, I would just leave it alone. They will not be paid to the city again as they will verify before anything is sent out. I would assume that the excess will just sit in the account or it will be reimbursed back to you. 

Thanks for the reply. Our originator told us the first payment would be due in October and yet at the closing it said September. He sensed I wasn’t too happy so he started looking at everything and found the tax situation as a way of kind of breaking even. He was a very nice man and I suspect my son reminded me of his grandkids. Real nice guy.