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Bank screwing me on Condo taxes?
Malkor
Registered User regular
Registered User regular
Hmm. I bought a Condo last year. This year I got a letter from the bank saying that they're having a problem paying the taxes I paid to them to the city.
Is this my problem or theirs?
Is this my problem or theirs?
Malkor on
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I have it at home. I will post the details later. I'm not the only one that received the letter either. A bunch of people in the building have got it too.
Goddamn Citibank.
From what I know of the situation that you've told me: the condo is in your name. You have a loan from the bank that stipulates that you pay your taxes to them as part of your monthly payment, they pay them to the city when property taxes are due. So, while the taxes are technically your responsibility, the bank has taken on the duty of processing them and insuring they get paid. Now, the issue comes up if the bank declares bankruptcy. Since the condo is in your name, you are technically responsible for the taxes. While you've paid those taxes to the bank, and could sue them for the amount they haven't paid, if they declare bankruptcy, they're not going to give you any money. Which could leave you holding the bag.
I don't mean to freak you out, and I am not a lawyer, and there may be some specific protection on this kind of mortgage lender/lendee relationship I'm not aware of that keeps you safe; I'm just laying out the potential worst-case scenario for you. Knowing what state/city you're in would be helpful, as well as knowing exactly what the letter says.
I think, but don't exactly remember, that the problem is that there isn't an "individual real estate tax bill" for my unit because the property hasn't been sub-divided by the assessors office.
That's going by memory and an e-mail from a neighbor. I'll definitely look at the letter closer when I get home.
But definitely be proactive and get a hold of your city/county/state tax assessor's office and try to talk to someone as soon as possible. In Miami, property taxes are due by March at the latest and after that there are late fees, but banks are required to pay by November because there is an early payment discount. Your due date may be earlier or later, but you won't know unless you call or check their website.
Is this a new building? Or a co-op? These are the only reasons I can see as justifying one tax bill for the whole building.
The bank may be trying to squeeze you for unpaid taxes by other unit owners. You shouldn't be required to foot that bill; however, you may be responsible for any shortfall in association fees.
I wouldn't worry, but I would keep an eye on the Treasurer's web site, and maybe make a call to the county assessor.
It's your problem. Call Citi and resolve it. Feel free to PM me if they pull shenanigans. I deal with Citi all the time and they're generally a very reasonable bank.
There's no reason to worry about this. Escrow issues pop up all the time, especially around the four quarters when actual tax bills are due. Call Citi and they'll tell you what's going on.
Ah, are they not FDIC insured for such a reason? I find it hard to believe that an escrow account would break the cap.
If they can't be insured, well that just fucking blows.
All the more reason to handle taxes yourself.
But yeah, Malkor, it sounds like it's just an issue with the county or city Assessor, and while you should get on it now and get it worked out, it's probably just paperwork. No biggie. Ignore what I said above.