[JGo9]

Here is the scenario:
– Purchase transaction
– Property Taxes are due, but not yet paid.
– Per the Purchase Contract the taxes will be pro-rated based on the closing date.

Question:
Would you be required to list the pro-rated taxes on the Loan Estimate or not? If so, how would you anticipate the # of months to be listed?

Thanks!

[jholzknecht]

Comment 37(g)(2)-1. lists examples of items included in the prepaid section. The list includes property taxes. If property taxes are due, I would suspect that the amount that is due is payable by the seller, not by the borrower. If a portion is owed by the borrower, then the number of months is simply the number of months. Please clarify if I am missing something here.

[Author]

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