Borrower applies for a RESPA-covered loan to consolidate several bills – credit cards, prior year’s past-due RE tax, current year’s income tax – and, of course, take a nice vacation. Bank does not escrow but will require that prior year's RE tax be paid from loan proceeds.
Should the prior year’s tax be shown on the HUD-1 in the 200 section, 900 section, or not at all? I'm thinking 900s. What say you?
You're never too old to learn something stupid.