Profile picture for aplomb

Is it normal that the Bank is making me to pay 6 months property tax in advance?

On my HUD-1 for the house that I am about to close this Monday, I am surprised to find out that I will have to pay 6 moths property tax in advance:

Adjustment for items paid by seller in advance:
   City/Town Taxes: $976.48        This is to cover the property tax starting from April 23, 2012 to June 30, 2012

Then another 4 months property tax is included in Settlement charge:  $392.87 x 4 = $1,571.48

So in total, Wells Fargo is charging me 6 months tax in advance!  Is this normal?

I thought that $976.48 shall be credited back to the settlement charge. Anybody can help here? 

Thanks in advance.

Michelle
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April 21 2012 - US
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Answers (1)

Profile picture for sunnyview
Not really sure if it's normal, but I do remember something similar when I bought my house in the middle of a tax year with WF. I had to reimburse the seller on my HUD for taxes already paid. I did not have escrow, but had an adjustment on my form for a block of months since in my area you pay all the taxes for the year in advance before May 1.

You can ask your lender about the extra amount or your escrow agent. Mine have always been very helpful when I've had questions like this. I am sure your buyers agent would likely have the answer too. Congratulations on your upcoming close!
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April 21 2012
 
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