Legal Question in Real Estate Law in Florida

Mortgage co. mistake in tax collection for escrow

Purchased house Dec 97. Mar 98 got Homestead. Notified mort co per instructions. No taxes paid since first due Nov 98. At closing taxes based on pervious owner. Mort co immediately applied maximum amount eligible instead of waiting for Tax Bill. Didn't ask it to be applied then.

Previous owner already exempted. When ours mistakenly applied too early, only $37.35 collected annually anticipating Nov. Now huge shortage, raising payment $250. We missed error. FHA loan and mort co required to pay taxes.

We know blase attitude is this happens. Feel that with other supporting mistakes they've made gross error. They've offered to spread shortage over 3 years-- looks good on paper only. Told to write CEO.

Payment at closing acceptable and budgeted the whole year. When reduced due to their negligence, extra money went to needs. Misinformed and misled.

Like them to 'absorb' shortage.

Legal options? How far can we go? Writing CEO we'd like to set a tone. Don't intend to be adversarial. What's in our favor? Details and the facts support us.


Asked on 4/23/99, 10:15 am

1 Answer from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Mortgage co. mistake

It seems you did not have an attorney for the closing. The tax differential should only be for the first year. If the deed was recorded in 1997 and you filed properly for tax year 1998, your 1998 taxes should reflect the homestead tax advantage. How much money is the shortage? If the mtg company is still willing to spread it over 3 years, do it. If you wish to discuss this with me call 305-940-8080 for an appointment.

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Answered on 5/26/99, 6:48 pm


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