I refinanced my condo, and the closing was yesterday. But it almost wasn’t.
Back in May, I found out that the county showed me delinquent on my property taxes for 2006, 2007, and 2008 – since I’ve owned the condo. Since the property taxed are set up to be paid through escrow, I contacted the mortgage company. They said they’ve been paying, and it must be a mix up. Long story short, the mortgage company has been paying the property taxes on the wrong parcel number. Once we (read: I) discovered the error, they were working on correcting it. I checked online in July, and the county showed me with a $0 balance, so I thought it had been resolved.
Flash forward to yesterday. My closing was scheduled for 3pm. Around noon, the title company discovered that I am now 4 years delinquent on my property taxes – 2006, 2007, 2008, and 2009. I contacted the mortgage company, and they said that disbursements had been made, and they would open a work order to research the issue. I asked if the disbursements had been made on the correct parcel number this time, but they were unable to answer that question, so they transferred me to the tax department.
The tax department showed the disbursement for 2009 taxes, but said that the other “disbursement” that should have covered the past three years was actually a refund from the county “for payment on the wrong parcel number.” Okay, so did they then reissue payment on the correct parcel number? Doesn’t look like it, but they’ll open a work order to research it.
The title company asked for something on letterhead stating the mortgage company would get this taken care of, otherwise I couldn’t close on the refi. I was told that the “supervisor is not authorized to issue any sort of promise to pay,” or, for that matter, any sort of letter stating that they were researching it. The turnaround on the research department was generally 10 business days, and “there’s no way to expedite it.” I asked for the number to call the people who would be researching it, but…they don’t have a phone number.
Great. It’s now 2:27pm, I have to leave work in 3 minutes to make the closing, if the closing is even going to happen, which, at this point, it doesn’t look like it will. My friend and mortgage guy says to go ahead and head that direction, they may be able to work something out.
Another long story short, I essentially had to promise to cash out my 401(k) to pay the taxes, should the mortgage company not get this worked out. The lawyer I was working with was flabbergasted (don’t get to use that word too often) over the whole ordeal, and recommended I threaten to contact the banking commission.
The closing went through, so yay. However, I was expecting to get some money back, and I was looking forward to buying new appliances for my condo. I didn’t find out until the closing that that part didn’t go through. I was, however, getting a whopping $125 back. Not quite the $1600 I was expecting.
I’m now on a 30 year loan at 5.25% interest, and I really never want to deal with any of this again. Of course, I know better than that, but it’s possible that I’ll never move. I’ll stay in my tiny condo for the rest of my life, alone, but for a series of cats. I don’t think it’s in me to become a crazy cat lady, but it might be worth it if I never have to get a new mortgage again…