I am a brand new agent and signed up with a discount broker. The training is more than lacking. I apolozie for posting this question but I need help ASAP and is very stressed.

On the HUD-1 the Property taxes due at closing and reserves.

My client lender forward me a Good Faith Estimate stating the following:

15 Months - Real Estate Taxes $4613.85

The tax bill due date is: Oct. 10th 2008 (Fulton county)
The tax bill due date is: Oct. 10th 2008 (Milton City)
My Client Closing Date is: Sept 29th, 2008


What I don't understand is that:

Will this be prorate and how? (Will she receive a credit)

Do my client have to pay the entire amount at closing? (what is her portions)

Also it states 190.00 for the HOA.

I thought that the HOA was prorated also...


Agents please don't be harsh... I know Signing on with CB or Prudential would have given me mentor and training. Now I am lost and need any help someone can offer! Stressed.

I am a brand new agent and signed up with a discount broker. The training is more than lacking. I apolozie for posting this question but I need help ASAP and is very stressed.

On the HUD-1 the Property taxes due at closing and reserves.

My client lender forward me a Good Faith Estimate stating the following:

15 Months - Real Estate Taxes $4613.85

The tax bill due date is: Oct. 10th 2008 (Fulton county)
The tax bill due date is: Oct. 10th 2008 (Milton City)
My Client Closing Date is: Sept 29th, 2008


What I don't understand is that:

Will this be prorate? (Will she receive a credit from the seller?)

Do my client have to pay the entire amount at closing and credit the seller back a portion.

Also it states 190.00 for the HOA.

I thought that the HOA was prorated also...


Agents please don't be harsh... I know Signing on with CB or Prudential would have given me mentor and training. Now I am lost and need any help someone can offer! Stressed.

I assume you represent the buyer. Yes the taxes will be prorated at COE. Since the closing date is 9/29/08 the seller owes until that date. The title co will collect from the seller up until that date and either pay that to the tax assessor's ofc if the bill is due or credit the buyers impound acct so when the bill does become due the money will be there to pay it. The buyer will pay approx 2 mo's more into their impound acct so there will be enough there when the next tax bill comes out to pay those taxes. This is because they don't get their first bill until Nov so they couldn't pay tax money into it. The title co also prorates the HOA but that is paid in advance. Be sure you know what the HOA assn charges for the transfer so you can advise your buyer unless your contact asks the seller to pay all the fees.

In New York the HUD-1 is prepared by an attorney; is it something that you are attempting to do yourself? It might well be out of the scope of your authority (I don't know Georgia law to tell if you are permitted to do that or not).

In general all back taxes (if any) must be paid out of the proceeds of the sale at closing to be able to convey clear title.

Taxes which have been paid by the seller past closing will be given a prorated share back to the seller. Taxes which will be paid by the purchaser after closing will have a prorated share credited back to the seller if they cover any period prior to closing.

This is a valuable discussion; but it should be combined with a duplicate OP over in Mortgage Lending at:

http://www.agentsonline.net/forums/ubbth...html#Post250972

So that all responses will be together.

Good Faith Estimate is NOT the final HUD-1 !

The GFE is an estimate to show the buyer an ESTIMATE of what the costs will be.

Closings in GA are handled by closing attorneys.Title company just handles there duties in conjunction with the closing attorney.

The final HUD-1 can usually be obtained 1 to 2 days before closing for review.Your buyers ABSOLUTELY do not have to sign anything at closing that is in question.This is why the closing attorney is there to handle any problems that arise and create a new HUD if there is errors on the one they have.

You the agent do not create a GFE(the mortgage broker or lender for th ebuyer does that) nor do you create a final hud.If they have line by line questions your mortgage broker should be able to explain it to the buyers.

The ONLY time I would do pre-lim hud's was for short sale purposes to send to assett managers for review to see what there net was going to be on offers.

Who is your buyer an investor or a homeowner? If it's an investor there taxes will be higher because they will not have the homestead exemption,you also need to check and make sure the current owners aren't over 65 and claiming the senior exemption or a veterans exemption which rules out school property taxes and makes there taxes lower.

You also need to make sure city taxes are included because sometimes agents put in the mls only county taxes for estimates.

I have always find it a good idea to go to the county assesors website and pull up a copy of the actual property tax bill.It will list what exemptions the current owner is taking so you will know if taxes are going to be higher for your buyer.It will also show if the city is included on the property tax bill from the county or they mail a seperate bill not included in the total.

Make sure the property is not in a flood plain either as this will make there homeonwers insurance go through the roof.Get a CLUE report to check for excessive claims against the property.

I could post so much more but good luck.Track down you broker!