OK! A strange phenomenon is taking hold of the Portland metro area real estate closing statments: ESCROW HOLDBACKS! Oregon is a little different in the way we collect our property taxes- we only do it ONCE per year, due in November. For all closings in September, and October most title companies require a huge reserve account to be collected at close. Usually the amount is 115% of last years tax bill PLUS an additional 2 months for good measure. Even if you are “waiving impounds” and paying your own taxes separately, you will have to cough it up at close. And when I say most title companies, I really mean ALL title companies, so prepare yourselves for this!
My colleague and fellow blogger Evan Swanson, over in the Beaverton Branch of Mortgage Trust, has recently posted an exhaustive explanation and history of everything you’d ever want to know about Escrow Holdbacks. Instead of explaining it myself, I will defer to him on this one.
CLICK HERE to quench your thirst for more knowledge about Escrow Holdbacks.