August - Time For My Newest Home Owners To Panic!

I love August! I get to hear from almost every one of my newest home owners! This is the month that North Carolina tax bills arrive. I should be getting mine soon judging from the emails in my inbox and the text messages on my blackberry.

There are many reasons why first-timers are some of my favorite clients, not the least of which is that you are so excited about your newest venture in life – being a home owner. But I’m sure you know that enthusiasm sometimes overshadows the not so exciting information we ask you to absorb during the closing process. 'How to pay a tax bill' seems to be at the bottom of any list of to-dos for a newbie. I get that. But by August, tax bills are at the top of that list. Nothing better than a bill from the state for thousands of dollars to get your attention.

Here’s a little rewind for those of you who may have missed this little tidbit at the closing table.

“Sometime in August you will receive a bill for your property taxes from your county in North Carolina. Hang on to it until you make your mortgage payment for September. Slip that bill into the envelope with your monthly payment and send it right on over to your lender. They will pay the bill.

When we went to closing the lender escrowed the portion of the taxes paid by the seller for the time they lived in the house. You still have September thru December to make your mortgage payments and a portion of that is being escrowed to make up the portion of the taxes you owe for the time you have lived there. The lender will send a check to your county in December – they just don’t know exactly how much or where to send it until you give them the bill!”

I know, I know, I could call you all in July and remind you but how much fun would that be? Today I got a great email from a young client who told me that when the bill for thousands of $$ arrived yesterday her husband remembered something I’d told them about it. (points) He checked his iPhone and there it was “Don’t Pay The Property Tax Bill.” She figured there was more to the story. She also invited me over to celebrate their little ones birthday on Saturday. (score!)

Many of you could be my kids and sometimes there is a perverse pleasure in the moment you get a panic call from a kid and you get to solve the problem with a simple solution and your kid is forever grateful. Don’t know what I mean? Ask your mom.