Posted by JohnBoy on October 04, 2000 at 21:18:25:
Does your lender require you to escrow the taxes with them? That is probably the reason. If you use a lender that doesn’t escrow the taxes then you shouldn’t have a problem. But chances are that you would end up using a B, C, Lender that doesn’t escrow taxes and you will end up paying a higher rate using that lender. If the taxes are escrowed they will roll into the escrow account with your lender. You don’t lose the money, you just don’t get to take the cash, it goes towards your taxes when they come due.
I’m losing thousands on every deal here…Help! The title company is willing to hold the funds but the Lender is not. I negotiate no closing costs and 100% financing on a rental…my commission and I can’t get the pro-rated property taxes credited to me somehow because the Lender will not let me walk away with the money. Can I only close on investment property at the end of the year to not lose thousands, sometimes, of dollars?