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In August I closed on a home purchase (not refi), it's now November.

My closing included both prepaids and escrow.

My "Section F" Prepaids included

  1. 1-year home owners insurance
  2. Prepaid interest from closing to the end of the month
  3. 3 months of property taxes

My "Section G" Initial Escrow payments included

  1. 3 months of home owners insurance
  2. 3 months of property taxes.

Transactions so far

  • The loan originator sold of my loan to a servicer after a few days.

  • My initial balance with the new servicer was the correct sum total for the initial escrow payments.

  • The current servicer paid my quarterly tax bill and deducted the money from my escrow

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So my overall question is - What happened to the prepaids?

The prepaid taxes from my closing do not seem to be sent to the city. Is that normal? I don't see any indication they were sent from the loan originator to the city or to the new loan servicer.

Is this normal? Who has my money? When should this pre-paid have been paid?

My expectation is that the prepaid amount would have gone to the first tax bill, and since my taxes turned out less that what I paid at my closing for these taxes I should have had a credit balance from the city.

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  • Is this a new house, or did you buy it from somebody? Nov 2, 2019 at 23:44
  • @mhoran_psprep . This is a new construction home.
    – HelpEric
    Nov 3, 2019 at 13:02
  • Going through the docs, looks like builder credited me the taxes due until closing that I would be responsible for.
    – HelpEric
    Nov 3, 2019 at 13:08
  • Have you contacted the city? Did they say your taxes are up to date, or that you owe them money?
    – yoozer8
    Nov 4, 2019 at 13:32
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    "normal" would be that the lender who bought your loan would have the balances for the prepaids and the escrows. They may or may not show it on your statement in a way that makes sense to you, so this could get resolved with a quick call to ask them to explain the statement. If they don't actually have the money you could call the lender that wrote the loan and ask them to explain what happened. I don't think we are going to be able to solve this without knowing more of the details.
    – dwizum
    Nov 5, 2019 at 13:37

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