Okay, this is a complicated one… any guidance is appreciated.
We are closing on a property in California on 9/14/2021.
The original Loan estimate used the current assessed tax value and 6 months worth to pad escrow/impound account for close (let’s call this $450/month).
The Closing Disclosure is now using the purchase price assessed tax value (let’s call this $800/month) and 15 months worth to pad escrow/impound account, resulting in almost a $10,000 increase for closing costs than the original loan estimate (SMH).
If we are doing an impound/escrow account, should the X amount of months of property taxes they want to collect for padding be using the current assessed value, or would it be at the new assessed value at time of closing (purchase price)? My thought is, isn’t the supplemental bill we can expect to come after purchase supposed to cover the tax difference between assessed value at time of closing and the end of the fiscal year June 30, 2022? If so, then shouldn’t escrow closing costs include the old assessment versus the new? otherwise if the new assessment value is used to fund the escrow at close, wouldn’t that mean escrow would be over padded, and supplemental bill will come either way and hit us while that money is sitting in escrow/impound?
In addition – Isn’t the seller is responsible for taxes between 7/1/21 and 9/13/21? If so, how is this realized? Should it be a seller credit to closing costs, or something different? Closing Disclosure isn’t showing anything for seller credits so I’m not sure how that usually is handled.
Sorry if dumb questions, the property taxes are confusing, and my lender hasn’t been answering lately.
My agent’s response to these questions: Don’t do impound, manage yourself.
However, it’s kind of too late considering we’ve gone this far assuming we’re allowing the lender to do the escrow/impound account for us…