To Add Non-Ad Valorem, or not to add Non-Ad Valorem in escrow?

[Geoffrey Pierce]

We've always had both Ad Valorem and Non-Ad Valorem taxes collected in our escrow impounds by default (not at our request). Our new mortgage does not include Non-Ad Valorem (special assessments like trash) in the impounds. We're instructing them to include them going forward.

Is it common for lenders to not include Non-Ad Valorem? About what percentage would you say? 

Also, who is responsible for getting the taxes correct at closing? Lender or Title? Both are pointing at each other. 

[Chris Mason]

Originally posted by @Geoffrey Pierce:

We've always had both Ad Valorem and Non-Ad Valorem taxes collected in our escrow impounds by default (not at our request). Our new mortgage does not include Non-Ad Valorem (special assessments like trash) in the impounds. We're instructing them to include them going forward.

Is it common for lenders to not include Non-Ad Valorem? About what percentage would you say? 

Also, who is responsible for getting the taxes correct at closing? Lender or Title? Both are pointing at each other. 

 Please note that "Ad Valorem" may pragmatically mean something different in Florida, I can only speak to California.

In California, we see out of state lenders, including big national brands that do VERY high volumes (1-800-Q-----n just today), screw up state specific property taxes all the time.

What that looks like for me is "hey Chris your competitor is only charging $4000 for property taxes, why are you charging $7000? Are you trying to rip me off?!"

First, I'm not "charging" anything, I'm "estimating," and I'm doing so as accurately as possible. Second, do you want a surprise bill in the mail a year from now for $3000, or not? That's the only choice here, loan officers do not dictate what property taxes are.

You seem better informed than most Geoffrey, but I think that's really what it boils down to here. I don't know Florida property taxes, but I assume you do. Don't assume someone from out of state, and that would include me if I got my Florida license, knows your property tax regime better than you! If they under-collect but you still want to work with them even though they might screw a bunch of other state-specific things up, go right ahead and start budgeting for that surprise bill right now.

@Melvin List might be able to speculate or shed further light.