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
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 21 2012 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

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!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 21 2012
 
Related Questions
Seller Cannot Close
You have many homes listed under "pre-foreclosure". How do I make an offer on 1 of these?
Profile picture for Phyllis McArthur
Latest answer by Phyllis McArthur
20 minutes ago | 1 answers
what is the clostest township in deleware county from south philadelphia
Profile picture for Joe Cafiero
Latest answer by Joe Cafiero
35 minutes ago | 1 answers
credit score
Profile picture for Gerald Hanson
Latest answer by Gerald Hanson
46 minutes ago | 7 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.