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underpaying on escrow taxes
Posted on 2/26/15 at 2:06 pm
Posted on 2/26/15 at 2:06 pm
not sure if anyone can help but Im trying to understand how this happened
moved into a new build house in april 2014. just got a note from our loan company that we underpaid our 2014 escrow by $1100.
I owe the $1,100 plus moving forward they are adjusting my new monthly mortage to reflect the more accurate taxes.
how does this happen? is this normal or is it standard for a first year of a home?
BS- my mortgage is going up $100 a month
I live in texas if that helps with laws, etc
moved into a new build house in april 2014. just got a note from our loan company that we underpaid our 2014 escrow by $1100.
I owe the $1,100 plus moving forward they are adjusting my new monthly mortage to reflect the more accurate taxes.
how does this happen? is this normal or is it standard for a first year of a home?
BS- my mortgage is going up $100 a month
I live in texas if that helps with laws, etc
Posted on 2/26/15 at 2:09 pm to dallastiger55
Escrow is an estimate that's always adjusted. They must have really missed the mark for that first year. Either that or your home value went way up.
Posted on 2/26/15 at 2:13 pm to dallastiger55
Possibly the county did an assessment that didn't affect the property tax until the year following your mortgage closing.
Posted on 2/26/15 at 2:16 pm to dallastiger55
They estimated your first payments based on taxes for land only. After your house was built, it of course caused the value to go up, therefore raising your taxes. That's why you have an escrow shortage. You will most likely get a small escrow refund next year at this time.
Posted on 2/26/15 at 2:17 pm to dallastiger55
New construction, so your escrow was based on the previous years taxes without improvements. Once the home was complete, the assessor reassessed. Therefore, higher prop taxes that the bank will collect.
Posted on 2/26/15 at 2:51 pm to Bucktail1
quote:
They estimated your first payments based on taxes for land only.
This.
This happens all the time. It's unfortunate that you didn't know that.
One of the problems with the housing bubble burst was that all these people were buying new construction, and this happened, and then their payment jumped. If the homeowner was on the edge to begin with... it would put them over the edge.
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