Well I Didn't Get a Property Tax Bill.

[Remy]

Said a co-worker who is selling her house and her taxes will be paid out of the selling price. She's also so surprised that the payments for the last 3 years yielded so little toward the actual house payment.

I'm far from a genius. But when I bought that house I had, I knew little would go toward the principle and more toward the interest. Even with a good interest rate. It gets a little better with every payment. I also knew my first year taxes were rolled into the closing costs and the next year I got the tax bill. In California you can pay it in two installments. Paid it. No problem.

How do people not know these things. I've made many stupid mistakes with housing. But when I had that house, I realized what the responsibilities were in owning it. Of course I knew I had to pay property taxes. I didn't want them rolled in the house payment. I could pay them yearly.

 

[Muskrat]

Many times the taxes and even insurance are part of the monthly payment and paid from the escrow account as they come due. It is possible that what they are referring to is that when a person sells a property the taxes are prorated to the date of the sale…and paid as part of the settlement costs.

 

[Muskrat]

Lenders have the taxes collected as part of the payment so the taxes get paid for sure. My current house has a three thousand dollar tax bill. Imagine coming up with that or even half that if money was tight. Banks do not like surprises

 

[fuzzybuddy]

When I bought my property in PA, you needed a statement that all taxes were up to date and paid. I could have bundled taxes with the loan repayment. but I figured it might be better to keep them separate. I like total control of my money

(BTW, when humans first started keeping animals like sheep, etc, and began growing crops, they invented taxes. No, wheel, no writing, still making stone spear heads, but they had taxes.)