Property Taxes due to seller in F

Last question I will ask on this topic. At a training session today, the lenders were insistent that we need to disclose any taxes due to the seller at closing somewhere on the LE. In a prior post I asked if pro-ration of taxes belonged anywhere on the LE and the answer was no.

I have to ask this......What are your thoughts on putting taxes due to the seller at closing in section F as prepaid taxes? These are taxes due to the seller at the closing table. I just cannot believe we do not have to account for that on the LE.

I believe taxes due to the seller will get reflected on the LE in the adjustments and other credits row of the Calculating Cash to Close table.

I agree with "just passing time" assuming that you know at the time of the LE. Usually this is a matter covered by the Purchase Contract, and lenders often don't have the purchase contract by the time the LE needs to be delivered.

Aaah, I see it now...

.Reduction in amounts for adjustments. Adjustments that require additional funds from the consumer pursuant to the real estate purchase and sale contract, such as for additional personal property that will be disclosed on the Closing Disclosure under § 1026.38(j)(1)(iii) or adjustments that will be disclosed on the Closing Disclosure under § 1026.38(j)(1)(v) can be included in the amount disclosed under § 1026.37(h)(1)(vii), and because the amount disclosed is a sum of adjustments and other credits, such amount would reduce the total amount disclosed. Additional examples of such adjustments for additional funds from the consumer include prorations for property taxes and homeowner's association dues.

Now I just need to find out from the LOS how they are handling this. Not sure where to enter the number to get it into the calculation.

THANK YOU!

It's not like other numbers in that table, which come from someplace else on the LE.