Apparently, the Tax office does not know about my house and has me paying taxes just against the land valued at 6k.
Do I let them know the mistake and pay up or do I spend the money?
hey dpatterson,
There is nothing screwy about it. It is normal for a mortgage company to refund any extra money above the standard 2 month cushion escrow amount they hold at the end of the year.
Check your Initial Escrow Statement, I think you already paid taxes included in your Closing Costs.
The money is yours, you can spend it, no problem.
It is one of the "tricks" of the building industry, just moving the money around, so you "kinda" overpaid in their books.
NOW, the next thing that should happen is that they recalculate your payments according to the taxes with HOUSE AND LAND for 2007. Will probably happen soon, then you will get a letter saying that what they initially calculated for escrow is too low. So they have to adjust it a little higher to cover taxes in December 2007, so your payments should go up about $200.
Let us know when you get that letter from your mortgage company.