Property Tax Statements for Your Loan Modification

While not always required, providing your property tax information is beneficial so that you can know what your monthly escrow payment should be or will be. Just take the yearly tax amount and divide by 12 to get close to what the bank will collect on a monthly basis. They always collect a little more to have a cushion.

While most homeowners escrow (meaning banks collect monthly payments and pay your property insurance) for property taxes, the bank may still request a copy of your property tax bill. If you do not currently have your taxes and insurance escrowed proof of the amounts will be required in order to get a loan modification. They will need your property tax bill in order to calculate your monthly escrow payments. Sometimes they even request them when they escrowed and already should know the amount of your yearly property taxes.

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Why does the bank need a copy of my property tax bill?

The bank needs this to be able to properly determine how much they need to collect on a monthly basis to be able to pay your property taxes when they come due. This payment will be included in any modification you receive. Even if your taxes were previously not escrowed, under almost every type of loan modification your taxes will NOW be escrowed.  One issue that can arise is when a homeowner has failed to make tax payments over a period of time and the bank has stepped in to make these payments. Some banks/servicers require a partial payment or that these arrears be paid over a period of time usually within 6 months but on occasion you can get them to spread this over 12 months to 18 months.

The bank is allowed and will almost always step in and pay your taxes if they are do and a homeowner does not pay them.

Please take a look at our Loan Modification ToolKit that provideds all the information needed to submit the best loan modification application possible.

 

 

 

 

 

 

 

 

 

 


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