Wednesday, October 21, 2009

VA Buyers and Tax Bill

Anyone who recently purchased a house using VA may have received or will receive shortly a tax bill. This usually causes some concern especially for first-timers. See, VA requires an impound account for taxes and insurance so to receive a bill makes one think something has gone wrong. Well, you can breathe a sigh of relief. If you look closely at the bill it should say "copy" on it and if you read the insert it will explain that payment from the buyer is not expected. This is simply a copy for your records. Now if there is no indication that the "bill" you received is a copy, your best bet is to call your mortgage company and confirm they have received the bill.

If you receive a supplemental tax bill, this you will have to pay. In escrow taxes are prorated and paid at the seller's tax rate; if you purchased the home at a higher rate you will owe the difference for the months you owned the property.

I hope this helps with some of the confusion, if you are still unsure, please feel free to give me a call.

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