question about property taxes/newly purchased home (Plantation: short sales, foreclosures)

[dirtymartini]

We recently (april 2009) purchased a new home in Plantation Acres. Got a great 4.5% interest rate, put 20% down, etc. It was short sale, NOT a foreclosure, which is now considered fair market value (the previous year, short sales AND foreclosures were NOT considered fair market value). The previous owner did not have homestead exemption on this property, and the 2009 assesed/SOH value was 471k. In 2008 it was 487k, so it has gone down a bit. We paid 350k for this house. We have already applied for and received homestead on this house.

I understand for the rest of the year we have to pay these crazy taxes (almost 10k a year) but when will the new rate kick in...Jan 1 2010? I used the online portability calculator (uses the just value of my previous house, and it asks for the PURCHASE price of the new home) on the bcpa.net site, and it looks like we should be paying 3k in taxes.

Our taxes are part of our payment every month, with the money in escrow. Someone told me it won't adjust on our payments until August 2010...does that make sense? Like...the money still has to go into escrow every month or something?

Thanks!

[acegolfer]

Here's my guess.

The property tax is paid only once per year (around November). Your 2009 tax will probably depend on the previous owner's purchase price. Go to bcpa.net to find out the exact amount.

On the other hand, your purchase price will be used for 2010 tax. But this doesn't necessary lower your escrow payment on January 2010, unless your lender do another escrow analysis. I think you can request one, when the new figures for 2010 becomes available.

The good news is even if you pay too much on your escrow account, the lenders are required to refund the part of the excess. The bad news is you will lose interest on it.

[dirtymartini]

Thanks for the quick response!

The previous owners paid 399k in 2002. But they had no homestead, so the assessed value kept going up...right?

That's what someone said...that we will be getting the money back at some point towards the end of 2010. I have heard August, and I heard November. I would really just like to get this darn monthly payment down, so maybe I will request an escrow analysis, that is a good tip. Or maybe I should ask if we can just pay our taxes at the end of the year, as opposed to having them pain monthly thru the mortgage co?

Thanks!

[acegolfer]

Originally Posted by dirtymartini

Thanks for the quick response!

The previous owners paid 399k in 2002. But they had no homestead, so the assessed value kept going up...right?

That's what someone said...that we will be getting the money back at some point towards the end of 2010. I have heard August, and I heard November. I would really just like to get this darn monthly payment down, so maybe I will request an escrow analysis, that is a good tip. Or maybe I should ask if we can just pay our taxes at the end of the year, as opposed to having them pain monthly thru the mortgage co?

Thanks!

If you are good with budgeting, ask the lender whether you are eligible to delete the escrow account.

I don't like someone else managing my money to pay tax and insurance, where I can easily do it. But you need the discipline to budget a large payment when the time comes.

[dirtymartini]

I have never done it before...and really cannot brag of having ANY budgeting skills, so I am scared! But I really would love to see this payment decrease. My principal and interest is only $1400...the rest is property insurance (we are getting shutters on, so that should decrease by maybe $50/month) and taxes!!