I'm looking for advice on when we should pay our customer's taxes out of their escrow account? We had a customer get upset because we paid her taxes 3 weeks before it was due, and also before she gave us the tax bill (we received the tax bill from the town). The tax bill was dated 11/10/08 and needed to be paid by 12/11/08 to avoid the penalty. We sent the check to the town on 11/25/08. We recently had another situation because the customer didn't think we should pay their taxes until the day before it was due.

Is there any information about when to pay the taxes, other than sec.3500.17(k) of HUD's Reg. X? Are we doing anything wrong by paying the customer's taxes a few weeks early?

§3500.17(k) is the only guidance of which I am aware.