Submitted 08/14/12 07:57 AM
Q. Hi. we are buying a house for $21,000 cash in PA. they are chargeing us 12 months of taxes and 14 months of insurance. $3400 for taxes and 700 for insurance. all together for everything is $29,000. this seems high to me for paying in cash. Does this sounds right???
Submitted 08/14/12 08:42 AM
Thank you for posting the question. If you are paying cash, there are no escrows held so should only have to pay for the current years homeowners insurance and reimburse the seller for the unused portion of their taxes. If you take out a mortgage then you would have to put tax and insurance money in escrow with the lender. This could of just been a mistake. I would recommend contacting your title insurance company and reveiw the closing fees with them. Good luck
Certified Home Selling Expert Advisor
RE/MAX Properties, Ltd
Submitted 09/13/12 08:05 AM
Well, you have your prorated taxes paid back to the seller, both School and local. Being that it is sept, your prorated amount will be up there, almost 100% of taxes due for the year. Also, if you want a clear title, which anybody does, the title company takes their share, then you have the transfer tax, cost to record the deeds... You'll see it all on your Hud sheet at closing. If there is a Home owners association fee, that goes on top also. But when in history could you buy a home for less than 29000? My Grandfather told me stories ... back when I was your age... Unfortunatley or fortunatley, depends on how you look at it, that time is back. How long will it last? Time will tell. It sounds like you are purhasing a foreclosure, banks push a lot of fees back on the buyer, the full transfer tax, sometimes back taxes. etc. Good luck on your purchase. Next time use a "Realtor", no under representation occurs in a transaction with a Realtor, and the knowledge of a housing expert is on your side.
Better Homes and Gardens Real Estate | Wilkins & Associates
5704218950 x 312
Submitted 09/18/12 09:57 AM
Without seeing your HUD it's hard to say exactly what taxes you are being charged for. If the home is a forclosure there maybe back taxes. You have a transfer tax in Pa which could be as low as 1% or as high as several percent.
If you are paying cash it is up to you whether or not you carry insurance. It is standard for the insurance company to require annual payments.
Your Realtor should be able to explain each line item the title company or attorney is charging to you.
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