Investor · Los Angeles, CA · Member since 2011 · 305 posts · 56 votes
Hello all,
I am refinancing a Sub2 into my own name. I am expected to close before month's end, and they aren't due to pay the taxes until March out of the escrow account. Of course I would have closed by then so a refund check will be sent to the old owner with the money in the escrow account. Well while I am trying to get the old owner to sign the check over (should be fun) I will have taxes due immediately.
Can I call the current lender and request they just pay the taxes a couple weeks early? I was told by my escrow agent that lenders usually pay all the taxes for all their loans at once to the county, so it's unlikely. She said my only chance is to delay the closing until after they pay the taxes so the account is depleted. If I delay, I lose the lock on my rate.
@Curtis H. you can extend the rate lock with a small fee. The fee is structured as a percentage of the loan amount. So if your loan is small maybe $200-$400 but if it is a very large fee maybe $500-$800. Ask your lender what it would cost to extend the rate and then come back here if you have more questions. Thanks!
@Curtis H. At least for me when closing, lenders generally required a hefty amount to be put in escrow upfront for taxes, regardless of when they were due. So closing earlier or later really didn't make any difference. I certainly wouldn't want to pay an extension fee for that.