Hello All,

We are dealing with a purchase loan where the seller had a homestead exemption on their property taxes and did not have to pay taxes.

Taxes are paid in arrears, thus there will be no 2015 taxes due in 2016. 2016 taxes will not be due until 2017.Being that there are no taxes due in 2016 we will not be escrowing for property taxes for the first year.

How would we complete the Estimated Taxes, Insurance & Assessments field for property taxes?

Do we include an estimate for what property taxes will be in the future and state that they are not being escrowed? Or do included the property taxes as $0 and state that we will escrow. Or do we not include property taxes in this section at all?

We will have the customer sign a form that essentially states they recognize property taxes will not be due in 2016 but will be there after.