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What this task is

This task collects current property tax statements for an owned property that is not the subject property. The statements should show:
  • The property address,
  • The tax amount due or billed period, and
  • Any delinquencies, exemptions, or special assessments.
These documents are used to determine the tax component of PITIA (see PITIA) for each owned property other than the subject property and to identify any tax-related risk.

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When this task is required

This task is required when the borrower owns an additional property that will remain after closing (not Pending Sale or Sold) besides the subject property. Examples include:
  • A departing residence retained as a rental or second home.
  • A portfolio of investment or REO properties where ongoing ownership costs must be included in underwriting.

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Why this task is required

Accurate property tax information is essential for:
  • Calculating the borrower’s total housing expenses across all properties.
  • Ensuring debt-to-income ratios reflect real-world obligations.
  • Identifying any tax delinquencies or liens that might present additional credit or collateral risk.
If tax amounts are estimated or missing, the lender risks:
  • Understating housing expenses, potentially overstating the borrower’s ability to repay.
  • Missing delinquent property taxes that could jeopardize lien position or reflect financial stress.

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Documents needed to resolve this task

To satisfy this task, provide:
  • The most recent property tax bill or statement for the owned property:
    • Showing property identification, tax year or period, and amount due or paid.
    • Indicating any exemptions, abatements, or special assessments.
  • If the taxes are paid through escrow, you may also provide:
    • A mortgage statement or escrow analysis that clearly identifies the tax portion of the escrow payment.
These documents allow the underwriter to include the correct tax expense in the borrower’s total housing obligations and to identify any tax-related issues requiring attention.