Home Mortgage Refinancing - What's In Your Contract? - part 2

by Linda Scott

If your escrow account is already short from a previous tax payment there will not only be an increase for the next year's tax bill, but an additional increase to cover the already existing shortage. Paying the shortage in one lump payment would eliminate this double increase. Your payment will still increase to the amount required to pay the next year's bill, but you won't also be making up for last year's shortage. This can be confusing so ask your home mortgage refinancing closer or loan servicing department of your lender to explain your options.

If you're buying a property that was split at the time of your sale (duplex, large parcel split into smaller ones, or some types of new construction) make sure that your property is assigned it's own tax identification number before a tax bill is issued. You don't want to receive a tax bill that includes other property other than the one that you own.

When you review your preliminary title commitment tax information should be included in the search. You can find out if the tax identification number included other property. This number is also what you will use if you need to contact the County for any other information regarding taxes.

Before you sign, if there is something that is not clear to you or you don't understand, ask. Most home mortgage refinancing contracts are standard forms and your loan officer or mortgage loan closer can usually clear up any confusion you may have. Remember that the papers you sign are legal documents and you are agreeing to the terms stated in the contract. If you're not absolutely certain that you understand your home mortgage loan contract, seek legal counsel.

Copyright (c) Linda Scott

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