29th March 2008

I hate taxes, redux

posted in Alaska, The Move |

A simple question:  Who is responsible for 2007 taxes on a property purchased in September, 2007?

Ahem.

More on this on Monday, when I can call the borough and the mortgage company!

Answer:  We are responsible.  For the last third.  The sellers were responsible for the first two thirds.  That money went into our escrow account upon signing the mortgage.  Further $$ were put into the escrow account each month.

But nothing has come out of our escrow account up to now.

Perhaps I am naive.  Our first mortgage experience was smooth as silk; we purchased at the same time of year, but never received a delinquent tax notice!  Because our first mortgage company, lo these many years ago, actually paid the $#@*ing taxes out of escrow without us having to do diddley.  So we fully expected the same thing to happen with this mortgage company.

But perhaps they’re up to their eyeballs in alligators, what with everyone and his sister trying to re-fi or get out of higher interest rates or walking away from mortgages that are for more than the property is worth any more or something…

I am left wondering what’s up with our house insurance policy, as well…

Grrrr.

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There are currently 6 responses to “I hate taxes, redux”

  1. 1 On March 29th, 2008, Johnny said:

    The answer is both the seller and the buyer. In the closing, there should have been an allowance or money back from the seller to the buyer equal to 9/12 of 2007’s taxes.

  2. 2 On March 29th, 2008, omegamom said:

    Johnny–see my update…I looked over the closing papers, and the $$ were definitely there. Unfortunately, they’re still there. Grrr.

  3. 3 On March 30th, 2008, Johnny said:

    Actually, I’ve had it done both ways. I’ve bought and sold land, I’ve refinanced two houses, I’ve had a construction loan and a closed out the construction loan with a conventional mortgage….so I’ve had lots of experience with closings.

    In all those closings, I only had one title company say they would take care of the taxes that coming year. It could have been partly due to their “extra” service. Or, it could have been the time of year we closed. But typically (sorry) it is up to the buyer to take care of the taxes.

  4. 4 On March 30th, 2008, Blog Antatonist said:

    Ugh. Taxes. Ours are sort of complicated because we have rental property, investments, business write-offs, etc. We finally decided to bite the bullett and let an accountant do it for us. Yes, it’s costly, but it’s SO worth it.

    Still, I have to listen to husband bitch and moan for about a week while he gathers up all the applicable paperwork and of course, there is inevitably something missing.

    It’s depressing too to realize just how much of our money goes to the government. I don’t even like the government.

  5. 5 On March 30th, 2008, noreen said:

    I do like the government. Not necessarily the current national goverment, but democracy is not alway a nice, neat business. I think an important part of living in a democracy is knowing what your taxes pay for. We get what we vote for. And, if you vote for imbeciles you get imbeciles. I live where local taxes are high, but our roads are cleared when ever the snow falls, we have great garbage service, great publicly maintained parks, great schools, great libraries, great services all around.
    As for what happened to the money in Omegamom’s escrow account? I don’t think it’s anything the Omegas did wrong, but I’d get on the phone first thing Monday morning and find out who did do what wrong. The money was there, it sounds like, but someone didn’t disburse it appropriately.

  6. 6 On March 30th, 2008, kris said:

    i believe if in your mortgage papers it says the escrow acct is for paying for the taxes it is the mortgage companies responsibility to actually send the $$ in that they have been collecting. i think they can actually get into trouble for keeping money that is supposed to be used for paying bills, like…taxes!! or insurance…

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