Property Tax Support

Property Tax Support

Property Tax Support

Depending where you live, you may owe property taxes to your state, city, county, school district, or other entities.

If you have a Mr. Cooper escrow account, you don’t need to keep track of who gets paid at tax time, how much, or their deadlines. We’ll dip into your escrow funds and do it for you.


PAYMENT TIMEFRAME

If your loan is escrowed, you can count on us to pay your taxes on time. Your escrow account will be debited about 10 business days before the delinquency date, and we’ll let you know when that happens.

The delinquency date is the last date that taxes can be paid before there is a penalty added. If, on the off chance, we miss the delinquency deadline, we’ll cover the difference and reimburse the penalty amount into your escrow account.

Many taxing authorities allow grace periods for payments. Grace periods are stretches of time after a due date when you can still get your payment in without penalty.

Some tax authorities even offer “early payment discounts.” If you’re eligible for these, we’ll always try make your payments in time to snag them. If, on the off chance, we miss the discount deadline, we’ll cover the difference and reimburse the missed discount amount into your escrow account.


ISSUES WITH TAXES

If you have an escrow account and you receive a delinquent tax bill, let us know right away so we can sort out what happened.

You can call us at 888-480-2432 immediately, or you can send us the bill. Please write your loan number on it first, then send to any of the following:

Email: OSCorrespondence.CTAX@corelogic.com

Fax: 817-826-1861

Mail:
Mr. Cooper
Attn: Tax Department
P.O. Box 9225
Coppell, TX 75019

If you get a notice that your property is eligible for a “tax sale” or a “tax foreclosure,” you should definitely call us right away at the same number: 888-480-2432.


Real Estate Tax Exemption

No matter what state your property is in, you may be eligible for a tax exemption based on state law and the taxing authority’s guidelines.

IMPORTANT: You must apply for and obtain documented approval directly from the taxing authority. Approval documentation must then be submitted to Mr. Cooper for updates to be made to your escrow account.

There are two common types of exemption:

  • Partial Exemption means you qualify to have a reduction in the taxable value of the property, thus lowering the overall tax amount.
    • Example:
      • A customer with an assessed home value of $200,000 may have a 25% tax exemption meaning there will be a $50,000 reduction of the taxable value.
        Therefore, they would only pay property taxes on $150,000.
        • That is a $1,000 savings, assuming a 2% tax rate.
          • 2% of $200,000 original assessed value= $4,000
          • 2% of $150,000 adjusted assessed value= $3,000
  • A 100% Tax Exemption means that you do not have to pay any of your property taxes.
    • Example:
      • A customer with an assessed home value of $200,000 may be assessed to pay 2% in tax of their homes value, $4,000.00. However, with an approved 100% tax exemption, you pay nothing and we do not collect funds in your escrow account to pay taxes.
      • Common examples of 100% tax exemptions involve senior citizens and disabled veterans

Common qualifying factors for exemptions that vary per state law and local taxing authority:

  • Homestead Exemption
  • Senior Citizen (age varies depending on taxing authority)
  • Disabled
  • Military Veteran

New Construction Property Taxes

If you purchased a new construction home, you may find that your first couple of property tax bills are lower than what was estimated at closing, depending on your taxing authority’s billing schedule. A common reason for this is that the property has not yet been assessed to include both the land and home, resulting in a lower tax bill amount.

The tax amount used to set up your escrow payment will be the last known tax amount, which is usually a lower amount because it is based on a “land only” value assessment.

IMPORTANT: Because of this lower value assessment, Mr. Cooper may return excess funds to you as an escrow overage after an escrow analysis. This does not mean that the taxes will not increase to the full land and home assessed value during the following tax period, causing a possible shortage in your escrow account and/or resulting in a supplemental tax bill.


California Supplemental Taxes

If your property is in California and the assessor finds a value increase—due to a recent appraisal, improvements, or new construction—you may receive supplemental tax bills on the increased property value. Unlike your ordinary annual taxes, the supplemental tax is a one-time tax which starts from the date you take ownership of your property or complete the construction until the end of the tax year on June 30th.

IMPORTANT: These taxes are the homeowners’ responsibility, and they will not be paid through your escrow account with Mr. Cooper. However, if supplemental taxes are not paid and the property becomes subject to a tax lien or tax sale, we may make the payment from your escrow account, resulting in an increased monthly payment after the next escrow analysis.

When will I be billed for the supplemental tax?

Depending on your taxing authority, you could be billed in as little as three weeks, or as much as over six months.

What if I disagree with the new value?

Once the assessor appraises your property and advises you of the new supplemental assessment amount, you will have the opportunity to discuss your valuation, apply for a Homeowner’s Exemption, or file an Assessment Appeal directly with the taxing authority.


Wisconsin Tax Payment Options

If your property is in Wisconsin, you have the option for Mr. Cooper to pay your property taxes directly to the taxing authority or to have a check sent to you to pay the taxing authority directly.

IMPORTANT: You must notify Mr. Cooper by November 30th if you want to change your tax payment option. Changes requested after that date will not take effect until the following year. You can send us a message or give us call at 888-480-2432 to request this change.

Options

  • A: Check is made payable to you and the taxing authority, then mailed to you during the second week of December.
  • IMPORTANT: If a higher payment amount is required by the taxing authority, it is your responsibility to pay the difference.
  • B: Taxes paid directly to taxing authority by January 31st.
  • C: Taxes paid directly to taxing authority by December 31st.
  • D: Taxes paid in installments directly to taxing authority by the following dates:
    • 1st Installment – December 31st
    • 2nd Installment – July 31st
  • E: Taxes paid in installments directly to taxing authority by the following dates:
    • 1st Installment – January 31st
    • 2nd Installment – July 31st