It's Spring and Tax Reserves Time in Illinois
What That Means for Home Buyers
And that means the trees will soon be blooming, the grasses greening, birds will be returning from warmer climates ...
... and Real Estate Taxes will soon be due.
For those owning property in Will County, IL, it should be noted that 1st and 2nd tax installment due dates were recently announced by Will County Treasurer, Tim Brophy.
Those dates are as follows:
- 1st Installment due June 1st, 2022. Interest to begin accruing on June 2nd, 2022, at 1.5% per month (post-mark accepted)
- 2nd Installment due September 1st, 2022. Interest to begin accruing on September 2nd, 2022, at 1.5% per month (post-mark accepted)
Those closing on their mortgages in April (after the 5th) will be required to pay an additional sum of money referred to as a Reserve Payment. This Reserve Payment is typically equal to 3 months of the previous year's tax bill tax calculation.
Why is this Reserve Payment required?
Since the NEW Will County Tax Bills won't be out until May 1st, there’s no way for the title company involved in their Closing in April (Title companies assume responsibility for making sure current tax installments have been paid) to know what the amount of the new tax bill will be prior to that date.
So a Borrower closing on their mortgage (for a property located within Will County) AFTER the 5th of April will pay a Reserve Payment sum at the time of Closing. After the actual Will County tax bill comes out on May 1st, the title company pays the first installment of taxes due.
The title company then refunds to the borrower any “excess” that may have been collected from them as a buffer at the time of their Closing. Called a TI (Tax Indemnity), it is required on all loans closing before the new tax bill becomes known (usually May 1st).
If you live or own property in Will County, IL, the details surrounding the when, what, where, and how of Will County taxes and their payment is of particular interest to you. They directly affect you in the long and short term, your investment, your life ... and if Closing on a mortgage after April 5th ... your Closing Costs as well.
More info and further details on Will County taxes can easily be found on the Will County Treasurer's website. I'm always happy to provide info as well, should you have questions and be in need of mortgage assistance.
Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
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