Do you pay just what the owners have already paid for that calendar year?
Meaning, if you buy in June 05, and the owners have paid for all of 05, you have tp pay them the taxes for June- December?
What if you buy in June 05 and the owners have only paid from Jan-June?
dengal
Posted:
Member since
Re: ? about paying taxes at closing
I depends on your lender. You have to pay the owner what they already paid - that's one thing. However most lenders require that you pay taxes six months ahead and place it into escrow.
cluelessbride
Posted:
Member since
Re: ? about paying taxes at closing
Posted by dengal
I depends on your lender. You have to pay the owner what they already paid - that's one thing. However most lenders require that you pay taxes six months ahead and place it into escrow.
I thought saving for the DP was bad enough - closings sound really $$$ too!
thiadora
Posted:
Member since
Re: ? about paying taxes at closing
Posted by cluelessbride
Do you pay just what the owners have already paid for that calendar year?
Meaning, if you buy in June 05, and the owners have paid for all of 05, you have tp pay them the taxes for June- December?
What if you buy in June 05 and the owners have only paid from Jan-June?
The lawyers do an adjustment at closing. They figure out the per diem for the taxes that have been paid and credit the seller for the charges from date of closing to the end of the tax period. So basically, you pay only part of the taxes that cover when you came into title.
