The borrower’s tax due date is beyond 60 days out from the loan closing. These taxes were paid. However, based on the closing rules, the taxes should be paid through the escrow account post-closing. The tax bill has been paid twice and the borrower will have to wait for a refund to be issued from the tax-collecting entity.
Or: The borrower’s tax due date was within 60 days from the loan closing. The taxes were not paid. However, based on the closing rules, the taxes should have been paid at closing and not from the escrow account. The lender has not paid the taxes and now there is a delinquent bill.