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Are property taxes required to be disclosed as POC on the HUD?
In the past we had always disclosed property taxes paid outside of closing in the 800 series, but in an internal audit recently we were told to put property taxes that are POC on line 904. In researching I have found varied opinions. If property taxes are POC, are they even required to be disclosed? In order to put property taxes POC on HUD line 904 our loan origination software has to be tricked to do this (using tricked for lack of a better word) It seems to me if we are having to trick our loan origination software to do something maybe something’s wrong.
Where property taxes are shown on the HUD-1 is an old question that has been much debated.
Property taxes that are apportioned at closing are generally disclosed on page in the 100/400 series or the 200/500 series. Property taxes that are escrowed for the next year go in the 1000 series on page 2. Past due property taxes do not appear on the form since they are not a settlement charge.
The treatment of past due taxes changes in August 2015 since everything that impacts cash due at closing has to appear on the form.
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