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Tax Proration

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BaileyMae
New Contributor

Tax Proration

My closing is set for 4/15.
My contract says: seller shall pay or credit.... A portion of such taxes shall be prorated through the date of closing based on a 365 day years. (the stuff between the dots is about unpaid taxes and liens)

I'm in Ohio and taxes are paid in arrears. If I look up the condo on the auditor site it says the taxes for the first half of 2013 have been paid in January of 2014. The next bill is due in June 2014 for the second half of 2013.

My question is 1) should the sellers credit me for the second half of 2013 taxes due this June? 2) will they also need to credit me for 1/1/2014 - 4/14/2044 taxes as I didn't own the condo then?
Lender Pulled Scores(2/2014)

EQ: 750 (same a myFICO) EX: 707 TU: 728
Message 1 of 3
2 REPLIES 2
ShanetheMortgageMan
Super Contributor

Re: Tax Proration

That is correct on both questions. 

 

Additionally, since the 2nd half of 2013 taxes will be due prior to your 1st payment due date, your new lender will require those to be collected for at closing.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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Message 2 of 3
BaileyMae
New Contributor

Re: Tax Proration

Thanks! It's much appreciated.
Lender Pulled Scores(2/2014)

EQ: 750 (same a myFICO) EX: 707 TU: 728
Message 3 of 3
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