Expert: Todd C. Menard - 8/7/2009

Question
I opened my mail a few days ago to find a notice from the Pima County tax 'police' that my house will be sold for a lien on past due property taxes. The taxes came from the year immediately before my purchase of the home. This was the very first notice that I had received that there was any problem with my taxes. I am the kind of person who pays every bill that I recieve immediately; I have never been late for any payment of any sort ever.
That this was the first notice I had of this situation is another question for another day.  My immediate problem is where the $  that was collected at settlement as I bought the property went. My  loan officers at --can I say the name fof the mtg co???--  "CB"

tells me that they “…will not send in writing, can not send in writing a letter  that explains what the funds collected on  line 1004 on the HUDc.rpt was collected for...It would be too confusing." My title insurance  co tells me that this $ was collected to pay the taxes from the past 7 months prior to my purchase.  My subsequent mortgage payments included escrow funds for the next due taxes (November).
Each of the two companies blames the other, and the bank (one employee)  has actually said that the title company person is a liar.
At the moment I do not have the cash at hand to pay the previous owner’s taxes. The property will go for the lien!!!!!!   The agent at the title company has told me that she will pay out of her own pocket (because of my dire circumstances) the tax bill and the penalty because she doen not see any other solution, even though the evidence is that the mortgage company had collected the funds for the tax bill at the settlement.
So the question: if line 1004  on the HUD form (March) records: “County Property Taxes 7 months…”   and my mortgage bills  from April on included escrow payments for the taxes due in November were collected, what is the  line 1004 money for? It is the EXACT amount of the original ’06 tax bill for the former owner.   Now, of course, there are interest charges on the bill, and the notice from the county tells me that I have to pay it by the end of this month (August).
What can I do? What should I do?


Answer
Hello Renee - Begin by understanding exactly what period the tax lien is for and the exact amount they say is owed. You may find the issue is with the Pima County Assessor and not title. Then again, if it is an escrow issue almost always the local escrow officer will be unable to handle post-closing issues. Ask to speak with the Branch Manager at the branch office you signed your documents in. Remember, you will get better assistance if you take the tone that this may have been an oversight on escrow rather than telling them they made a mistake with an attitude. But, if you were collaborative in your approach and yet are having any communication issues or feel like you are getting the run around go right to the corporate office. You can find a contact person online most of the time. Provide a copy of the Pima County Tax information you received to whomever is assisting you, either by fax or attached to an email, depending on your communication method. Usually a situation like this will require a light investigation and be referred to the escrow companies legal department. Again, this may take as little as a few days to no longer than a week-10 days. Show concern for the Date of Action on the Notice as this will politely motivate the person you are speaking to and emphasize this as a priority. This should provide you with a thorough understanding of the escrow companies actions and how they intend to rectify the situation if it was on their end. Of course, it may also be some other issue. But this should help you get to the bottom of this. Of course, if not, and there is still a run around, you will need to contact an attorney who specializes in real estate to help you. But try this first unless time does not permit. I hope this helps. Let me know if I can be of further assistance. - Todd