Assemblyman-elect from the 16th legislative district said banks should adjust escrow accounts of property owners who prepay property taxes so they don’t end up paying more than necessary
(TRENTON) – Assemblyman-elect Roy Freiman (D-Somerset/Mercer/Middlesex/Hunterdon) on Thursday called on banks to adjust their administrative practices so that New Jersey homeowners with escrow accounts who prepay their 2018 taxes don’t end up paying more than they have to.
Freiman said many property owners in the 16th legislative district and the state are rushing to prepay their 2018 property taxes to avoid the repercussions of the new federal tax overhaul. In the process, many are learning that their banks are not adjusting their escrow accounts to reflect these payments.
“The banks are not recognizing the prepayments being made. They are planning to ignore the prepayments of the property taxes and expect monthly escrow payments, as if nothing unusual has occurred,” said Freiman. “In reality, the banks should be working with homeowners to lower their monthly payments.”
“Homeowners are dipping into their savings to pay their 2018 property taxes early, and then have to continue to make their monthly mortgage payments as if they had made no payment at all,” said Freiman. “This is an additional and unnecessary burden on property owners that the banks can help avoid by simply adjusting their escrow accounts to reflect the payments already made.”
Freiman said one of his constituents called his bank, but the bank was not prepared to make the adjustment. This late hour change in the tax law is negatively impacting New Jersey residents, and giving financial advisors and banking institutions very little time to react, said Freiman.
A former executive at Prudential Financial, Freiman called on the banks to partner with New Jersey to ensure that property owners who want to prepay their property taxes can do so with confidence, knowing that their payments will be acknowledged.
“Thethe tax bill signed by President Trump is the real culprit here,” said Freiman. “I’m asking the banks to side with the property owners who are rightfully concerned about the impact the new tax law will have on their finances, and ask that they adjust their administrative practices to provide this service to homeowners.”