Michael S. Rosen wrote:
- quote -

My point is this. It is clear that the lender should
reimburse the borrower if they send a late payment and a
penalty is assessed. If anyone who pays on time gets a 2%
discount, then a late payment should trigger a reimbursement
for the penalty and the discount. However, if the governing
body is offering a 2% discount to taxpayers who pay early
(some date before the due date), it is not clear to me that
the lender would be on the hook for that discount as long as
the tax payment was made on time.

--

Alan
http://taxtopics.net

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"A.G. Kalman" <agk202[at]netscape.net> wrote:

- quote -

Why do you say that? When you say liable, you do mean if
they lose the discount the lender should pay the full
amount, correct? I would think, no matter what the
circumstance, the lender should be responsible for any loss
of discount if the tax bill is not paid on time.

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"John Q. Taxpayer" <bh.boclraca[at]verizon.net> writes:

- quote -

No, it's a case of two bureaucracies in a pi$$ing contest
and you're the one with the wet shoes.

Ultimately you, not the mortgagee, are responsible for the
taxes. Send them a certified letter telling them that if
the taxes aren't fully paid by December 15 (they pay the
penalty) you're going to pay them directly and sue. Then do
it.

Phil Marti
Topeka, KS

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John Q. Taxpayer wrote:

- quote -

No, this is an example as to why taxpayers should pay their
own tax liabilities directly. That said, I am aware that
some taxpayers have no choice when they acquire a mortgage
and must pay into an escrow account. The mortgage company
is obligated to make the tax payments on time. Failure to
make the payment timely makes them liable for any penalty.
As to the 2% discount: If the discount is available to
anyone who pays on time, then the lender should be liable
for that as well. If the 2% discount is only available to
those who pay their tax bill before the due date, I would
think that they may not be liable for that amount.

--

Alan
http://taxtopics.net

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"John Q. Taxpayer" <bh.boclraca[at]verizon.net> wrote

- quote -

They should at the least, pay the tax amount in full, then
dispute the penalty amount. This would accomplish many
things, like stopping the accrual of interest and/or
penalties.

- quote -

The school district/county policy seems fair.

- quote -

It clearly is a case of faulty mortgage company policies and
systems.

Contact your state banking department (I believe they would
be responsible for the mortgage servicing companies) and
file a complaint. Then forward the complaint to the
mortgage company. While I'm sure you got a great deal on
your mortgage, you may strongly consider a re-fi to another
company with better service and policies.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Here's a good one:

My mortgagee and the school district are embroiled in fierce
dispute that has caused the property tax bills for several
residents, including myself, to go unpaid this year.

The mortgagee deducted the tax payments for the escrow
accounts and sent a bulk check to the school district, as
they do every year. The school district said the check was
short by a few dollars and they said they mailed it back to
the mortgagee last August. The mortgagee says they never
received it and it has never been cashed. (The mortgagee
only begins investigating checks that are not paid in 90
days.) When the school district mailed the check back, they
said they never called the mortgagee because the check did
not have their phone number on it. The school district told
me that they are not obligated under the law to notify the
taxpayer at that point. A few days ago, I received a notice
from the school district that the original tax has to be
paid by 12/31, minus the 2% discount, plus a 10% penalty.
The mortgagee refuses to pay the tax until their attorney
advises them who should pay the penalty, the mortgagee or
the taxpayers.

Both sides have given me contradictory information and are
blaming the others. The mortgagee wants to know why the
school district could not have cashed the check and then
asked the mortgagee for the additional two dollars that the
payment was short by. The school district says that under
the law they cannot apportion the incorrect payment among
several taxpayers.

If the tax bills are not paid by 12/31, the matter goes to
the Tax Claim Bureau. The taxpayers may be forced to pay
this bill twice. I told the school district that they should
have had the courtesy to contact the taxpayers BEFORE
penalties were instituted. They said they are not obligated
to do that. They are only obligated to mail the check back
to the mortgagee. Why couldn't they have sent the check by
certified mail? Are taxpayers just considered to a slip of
paper that the school district shoves into an envelope and
throws in the mail?

Is this a case of taxpayer abuse? ??

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