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Author: mikestanley Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127777  
Subject: Question about refi and property taxes Date: 1/5/2003 12:57 PM
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We just closed on a VA streamline refi on the 27th and after doing a little poking around on my old mortgage company's site (mainly to see that the payoff went through) I have a question. My broker explained this to me at one point but the holidays seem to have driven all memory of it from my head.

Ok, we have an escrow account like most people. Our taxes are due in October but somehow (beats me) aren't "late" until February. So even though our escrow account was fully funded, because the broker wasn't able to confirm the taxes had been paid (and at that point, they had not been), we had to have this full year's taxes and a partial for next year in the deal.

So basically we paid the taxes in full for this year just in case our old mortgage company hadn't paid them yet. Well, it turns out that they did pay them, basically a few days before closing. So our old company paid them and we paid them as well in the closing.

My question is - what happens to the extra payment? Does the new mortgage company refund them to us (if, say, they haven't zapped them to the county clerk yet)? If the county gets one check for them then a second one, does it refund them to us or the mortgage company?

Ultimately, though, that chunk of money would make its way back to us, either directly or in the form of being applied to the balance of the loan or being put into the escrow account, right?

I'll be asking our broker this week - just figured some of you guys might have enough experience with this sort of thing to make an educated guess. Thanks for your time!
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Author: Inpho Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50057 of 127777
Subject: Re: Question about refi and property taxes Date: 1/5/2003 3:59 PM
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I think it will end up being refunded to you from one party or another (rather than being applied to the mortgage balanace or escrow account). This happened to me on a past transaction and I got a refund from my new mortgage co. when they realized the taxes had been paid by the prior mortgage co.

Good luck,

Inpho

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