Author Topic: Closing Loan Disclosure Discrepany  (Read 455 times)

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Offline newhomebuyer2021

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Closing Loan Disclosure Discrepany
« on: February 13, 2021, 02:21:23 PM »
  • I am a new home buyer purchasing in Irvine.
  • Currently in the final phases. Loan in approved through the builders preferred lender.
  • I received the Closing Loan Disclosures on Friday (02/13)

Is the below normal or something shady
  • There is a new line time in my closing costs - around 10K extra.
  • The line item in question states TAXES 2021–2022 07/01/21 to 07/01/22
  • There are other line items County Taxes / Assessment - This I understand.
  • What is coming across as shady is - [#2, from above - TAXES 2021–2022 07/01/21 to 07/01/22] This was never mentioned anywhere during or throughout the process in any document whatsoever.

Upon bringing it up with the builders preferred lender:
- Initially, they quoted this "Orange County has made a change and is now requiring property taxes to be paid through July 2022 instead of July 2021 for properties that are not yet segregated yet. With this property being new construction the property has yet to be segregated"
- When I further asked details and mentioned that this cannot have happened over night (especially County affairs) and also mentioned that I could not find any information here - [https://www.ttc.ocgov.com/]
- Lender backed away saying it is from the seller and I should talk to Sales Office. (Since I waived impounds).
- Given that the lender is builders preferred lender and they put it on the closing cost, I find it hard to believe that I should be discussing with Sales Office. I have however reached out and expecting a response on Monday.

  • If this is normal, will the county be providing receipts that I have paid those taxes until 07/01/22 like the item says.
  • If something sounds fishy, what can I do to protect myself?
  • Can I report this to any agency? At-least, it would deter them from doing something similar in future

Given the collective experience and expertise this forum has, hopefully someone might have some answers/suggestions.

Thank you for your time.

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Re: Closing Loan Disclosure Discrepany
« Reply #1 on: February 13, 2021, 06:26:50 PM »
Interesting, I've never heard of having to prepay the county property taxes forward by 16+ months as it's usually through the end of the County's first fiscal year end (6/30). I would advise you to speak with the sales office and find out why they are requiring this and to provide documentation. Even if it required, you'll get credit for the property tax payment as escrow will disburse those funds to the County after closing. It could very well be the case if the builder can not separate the property into new APN #s but definitely inquire with the sales office (they will probably need to speak to the corporate office about it).
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Offline newhomebuyer2021

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Re: Closing Loan Disclosure Discrepany
« Reply #2 on: February 13, 2021, 08:50:07 PM »
Interesting, I've never heard of having to prepay the county property taxes forward by 16+ months as it's usually through the end of the County's first fiscal year end (6/30). I would advise you to speak with the sales office and find out why they are requiring this and to provide documentation. Even if it required, you'll get credit for the property tax payment as escrow will disburse those funds to the County after closing. It could very well be the case if the builder can not separate the property into new APN #s but definitely inquire with the sales office (they will probably need to speak to the corporate office about it).

Thank you. I will check with the sales office.

Offline ndmaynard

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Re: Closing Loan Disclosure Discrepany
« Reply #3 on: February 13, 2021, 09:54:41 PM »
Are they giving you interest accruals on your escrow account?

Offline newhomebuyer2021

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Re: Closing Loan Disclosure Discrepany
« Reply #4 on: February 14, 2021, 11:11:02 AM »
Are they giving you interest accruals on your escrow account?

I have not impounded but if they are going to collect 10K upfront, definitely going to check with them. Thanks for the pointer

Offline Cares

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Re: Closing Loan Disclosure Discrepany
« Reply #5 on: February 14, 2021, 05:16:17 PM »
It seems a little weird that OC would require 1+ year prepayment of property tax. I have refinanced many OC properties lately and the county only requires the upcoming property tax bill due to be paid.

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Re: Closing Loan Disclosure Discrepany
« Reply #6 on: February 14, 2021, 09:52:19 PM »
It seems a little weird that OC would require 1+ year prepayment of property tax. I have refinanced many OC properties lately and the county only requires the upcoming property tax bill due to be paid.

That's a refi...it's very typical for builders to have the buyer prepay the entire annual property tax bill even if they close in July or August but I've never seen them require the buyer to repay to the following County fiscal year of property taxes. Definitely unusual to hear.
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Offline Cares

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Re: Closing Loan Disclosure Discrepany
« Reply #7 on: February 14, 2021, 10:10:46 PM »
Right, that's my point. If OC has some new rule requiring prepayment on purchases as such, I would think refinances would have been affected in some way.

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Re: Closing Loan Disclosure Discrepany
« Reply #8 on: February 14, 2021, 10:19:56 PM »
Right, that's my point. If OC has some new rule requiring prepayment on purchases as such, I would think refinances would have been affected in some way.

Hard to say, I think newhomebuyer needs to inquire with the sales office because I know that things vary a bit from builder to builder.
Martin Mania, CPA
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mmania001@yahoo.com
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Often imitated....Never duplicated!

 

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