Profile picture for Cobrand Demo3

XYZ Brokerage

Email: jeff@xyzbrokerage.com

Phone: (206) 555-1234

Website: www.xyzbrokerage.com

What is 125 rule on property taxes?

Profile picture for Pickly
Thank you guys. He is far in the transaction, I have a question for the expert here. What is 125 rule in property taxes? His LO was saying that the property was assessed and it shows that his property tax  yearly is $300. $25monthly.  Good News, but here is what is confusing him LO said since taxes is too low, the bank has this 125 rule which states that instead of him paying $25 he should pay $125 a month. When he asked his realtor to find out what is going on, his realtor told him the bank is setting up the tax not the county. I told him he should find out at the County Office. I am confuse. I need your professional expertise on this.

Thank you.
  Flag content
Close
Report a Problem
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.
August 12 - Louisville

Replies (2)

If I understand your situation it sounds as if your lender is violating RESPA Sec. 10 as it applies to the collection of escrow accounts for taxes, insurance, etc. Penalties for violating RESPA are fairly severe so I doubt very much that your lender will want to risk a RESPA violation. If they elect to dispel this as myth feel free to relay their correspondence on the matter to your local HUD office 
  Flag content
Close
Report a Problem
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.
August 12
Is the property new construction? If so sometimes the last assessment will be on raw so the investor will estimate what the taxes will be on the completed home.
  Flag content
Close
Report a Problem
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.
August 12
 

Have a question? Ask it here.

What's this?
Close

By starting a discussion, you can expect more of an interactive, back-and-forth experience where the conversation can go in many different directions.

Or start a discussion

 
Top Lenders
Ratings
Subscribe via RSS
  1. 5.0/5.0

    38 reviews
  2. 5.0/5.0

    20 reviews
  3. 5.0/5.0

    48 reviews
  4. 4.7/5.0

    50 reviews
  5. 4.6/5.0

    17 reviews
Related Discussions
Discussion What is 125 rule on property taxes?
  • Last reply by Mike Harrison
  • August 12
Need a Mortgage?

Zillow Mortgage Marketplace

  • Competitive rates
  • Accurate, custom quotes
  • Thousands of lenders

... and, it's free and anonymous

Get instant mortgage quotes
Estimated purchase price Current mortgage balance Desired loan amount
98104

Learn about Zillow Mortgage Marketplace

Zillow Poll:
Suggested by Sharon Schneider
Your household has how many cars?
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

pageName