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

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Posted by ell_13

Member since Apr 2013

84943 posts

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.

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Posted by Oenophile Brah

The Edge of Sanity

Member since Jan 2013

7540 posts

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.

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Posted by Bucktail1

Member since Feb 2015

3186 posts

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.

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Posted by NEWBIE

Member since Jun 2008

196 posts

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.

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37022 posts

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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