Property taxes are NOW due at closing.
On any loan with a property located in the State of Oregon, or any state where property taxes are due November 2011, investors will require that those taxes get collected and held by escrow until the tax bill is sent out.
This pertains to any loan that is scheduled to fund September 15th or after. Since the 2011-2012 tax bills have not been disbursed yet, it will be typical to use the 2010-2011 Property Tax figure as noted on the Preliminary Title Report for the purpose of calculating what to collect.
For instance, if the Prelim indicates that the tax figure on said property for 2010-2011 was $1870 for the year, the investor will require escrow to collect and "hold back" that $1870.00. Once the tax bills are sent out by the respective county, the Escrow Company will forward those funds to the county. In addition, if reserves are being collected for future tax payments, it's typical that another three to four months (in this case $155.83/month) would be collected for prepaid "reserves".
Borrowers scheduled to close on transactions over the next few months should be aware of this. Also, it's not uncommon for Escrow companies to charge and collect a "hold back" fee. This will vary from escrow company, but a typical range could be $25-$65.00.
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