TLDR: Closed 12/26, with 2 of 3 of 2025 taxes processing after paid by current mortgage. Brought full tax amount to closing with Title expected to pay 3rd tax and refund other 2 once processed. Current mortgage pays Tax 3 after closing but before funding so payoff amount has increased. Title is holding full tax amount from me, same taxes that have now been paid by current mortgage. How do we fund the payoff difference?
LONG VERSION
Closed on Dec. 26th and brought a little over $8k to closing. Actual closing costs were rolled into the refinance. The $8k was the equivalent of all 2025 taxes that are in transit— paid out of escrow but not yet showing zero balance with tax entities.
New loan was to be funded on December 31st. Property taxes are due Jan 31st here, but my current mortgage company sends the tax payments in December. I have 3 tax entities. Current Mortgage company sent out tax #1 and #2 in early December, as of closing date, the payments still show pending. Looking at last year’s taxes, the accounts won’t show ‘paid’ until January 31st, the actual due dates. Tax #3 of $4400 was still pending as of closing date.
I was told by title to bring the $8k equivalent of all 3 taxes to closing. Title would hold the funds. $4400 that had NOT yet been paid by Current Mortgage Company would be paid by title to Tax #3. Once the tax entities for Tax #1 and #2 show zero balance, I would be refunded the $3600 for them. I was fine with this because I only had $300 left in current escrow anyway.
Closed Dec 26th.
Dec 29th, Current Mortgage Company pays out Tax #3 and emails me Dec 30th that there is now an Escrow Advance from them to me of $4100 since my Escrow only had $300 left.
Updated payoff amount DUE TODAY since today is funding day, is now around $4000 more than anticipated payoff at closing. I called Title agent yesterday and she didn’t seem concerned and said she would let me know next steps.
My dilemma: My current mortgage company has now paid the $8k for all my 2025 taxes. I have also handed $8k to Title to cover all my 2025 taxes. Title says they can’t credit me those amounts until tax entities process the payments sent from current mortgage and show zero balance. Yet here we are with a payoff shortfall since I now owe Current Mortgage Company $4100 more. New Mortgage Company is wiring original payoff funds to Title today.
Where is my loan officer in all this? Out of the office for the holidays since everything was wrapped up on Dec. 26th. I’m hoping I can reach whoever is covering for her when I call again today.
Am I stressing out over nothing? How do these things play out? I already have $8k in limbo, I’d be pissed if I have to bring another $4k. Can Title just take the $4100 from the $8k I already gave them for taxes and add to the payoff?
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source https://www.reddit.com/r/RealEstate/comments/1q09gg4/welp_what_a_mess_refi_payoff_amount_increased/
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