Expert: Jim Meadows - 8/10/2009

Question
My mortgage company notified me this month of a transaction error that occurred in Feb 2002 (Pennsylvania).  They're claiming they paid our real estate tax that month even though it was removed from the escrow account.  I can't find a seven year old canceled check to prove that I paid and they're dragging their feet on providing me with an electronic download of my account, during the time period.  Despite all this, is there a statute of limitations for their claim?  If they haven't noticed this discrepancy for the last seven years, can they still recoup the tax amount if I can't prove I paid?  Any information would be helpful.

Answer
Sheila, Your state or local tax records might indicate when a payment was made and for how much. Have you requested your bank to produce a copy of your check. Most will for a fee search for approximate date and amount(may be too old but you should ask).

Even though you can't produce evidence that you paid the taxes it seems reasonable to ask your mortgage company for proof that they in fact did. The statute of limitations in Pennsylvania for notes/mortgages and contracts is six (6) years. Jim

Follow up for Sheila www.statuteoflimitations.net