Two of my least favorite institutions combined into one problem!

[indysteel]

Ugh. I've gone round and round today with my former mortgage company and my former county treasurer. Between the two of them, I'm not sure who's worse.

I sold my former home in May. Closing was just days before the May installment of property taxes were due--taxes that I was liable for per my contract with the buyer. My lender repeatedly assured the title company that they had not already paid the taxes out of my escrow account, so I paid them at closing. Come to find out, the lender had paid them. A month before closing! They assured me they'd take the steps necessary to get a refund but admitted that it might take six months.

So I patiently wait. And wait. And wait some more. Having not received the refund by November, I called the lender again today. Apparently, the county treasurer told them way back when that they merely applied the double payment to the November installment and that no refund would be forthcoming.

I then called the treasurer and was told much the same thing. Now, I wasn't liable for the November installment per the sales contract with my buyer. Of course, the treasurer didn't care about that. They also indicated that if I had contacted them immediately after closing, they likely could have given me a refund. Argh! Why did I rely on my lender for this!!!!?????

So, my only recourse is against my buyer. Now what are the chances that he'll just cough the money up, especially since his own lender probably escrowed the funds in anticipation of receiving a bill? The lawyer in me says slim to none. It's not a huge sum of money, but it's enough to bother me, at least for a bit.

Argh. The only thing I hate more than dealing with my mortgage lender is dealing with the county auditor/treasurer/assessor. It's not just that I didn't like what I was being told. They were so rude in explaining it to me. I know they must take a lot of abuse, but I work in government, too. As irritating as the public can be, they're the ones paying my salary.

[Catrin]

So sorry to hear about this frustration, hopefully things will work out.

[Zen]

Take they buyer to small claims court?

[indysteel]

I've thought of that Zen, but it's probably more trouble than it's worth. I think I'll just send a letter. It likely won't elicit a response, but there's also nothing to lose in sending it. If he reimburses me, it'll presumably be merely an act of good faith.

With our current house, we've thought about eliminating the escrow and paying taxes and insurance directly. Frankly, it's a lot easier to leave out the middleman--assuming the bank will agree to it. Sometimes they do, sometimes they don't.

[JennK13]

What has the Lender said about it? I would think they have some responsibility since it was their mistake. Then they can deal with the treasurer. And I wouldn't think it's that big of a deal for the County to reimburse you and bill the new owners......

[ny biker]

For starters, I would go back to the county treasurer's office and try to get them to reimburse you. You might need to go above the person you've already spoken to. You do not own the house, you can prove that with documentation, you are in no way liable for the November payment.

If that doesn't work, you need to explain the situation to the buyer and ask them for help. They might say no, but then again they might reimburse you without hassle. If it were me, I would want to know so I can get my bank involved, because they should not be paying a tax payment that has already been paid. If they do, then once again the county has been overpaid. Also, I absolutely would want you to be reimbursed because it's just not right for you to pay taxes on my house.

I don't see how you can take the buyer to small claims court if you haven't tried other means to get the money from them.

Good luck!!

[abejita]

With our current house, we've thought about eliminating the escrow and paying taxes and insurance directly. Frankly, it's a lot easier to leave out the middleman--assuming the bank will agree to it. Sometimes they do, sometimes they don't.

Only mentioned it because she was thinking about it...

[Mr. Bloom]

Indy, even though it was charged from the escrow, the buyer may have an issue since the escrow analysis won't be completed for a year and then the amount of the overage may be spread out in reduced escrow over the following 12 months from that...if they are stretched for cash, it becomes messy.