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We are in Simpsonville in the Remington Ranch subdivision. We bought a new construction home in August 2012. I just received a notice from our mortgage servicer stating that our payment was increasing $450 a month due to an escrow shortage. Apparently our taxes went up over $2000 this year. $1230 to $3408 was the increase. They are stating it may be b/c we qualified for the Homestead Exemption and now we don't? I don't think we were ever supposed to qualify for that - we are 27 years old with 1 child. I always expected our payment to vary each year due to the payment being escrowed but this is beyond ridiculous. Does anyone have experience with something like this or know what may have happened? I am calling on Monday but am obviously distraught and looking for any opinions/feedback in the meantime.
The mortgage company probably originally estimated the property taxes in your last year's escrow based on the last property taxes, which may have been on the land only. The tax bill probably needs to be amended from 6% to 4%. When the title changes names the tax bill is calculated at 6% until you can prove that it's owner occupied. The mortgage company has already paid the bill at the higher rate, but if you get an amended bill for the 2% difference the difference will be refunded to the mortgage company. They will probably change your estimated escrow difference, but possibly not until the end of the year. Good luck.
Did you somehow end up paying 6% instead of 4%. You should have gotten a form in the mail to send back to the county to fill out for the 4% rate. Did you do that? If you didn't, you are probably paying 6% now but if you live in the home and don't own another in the state, you should get the 4% rate.
Or, is it the difference between vacant land and the addition of the new home?
We had something like that happen a few years ago. Just call the tax office and make sure that they change the homestead exemption criteria. They will mail you something, if I remember correctly.Your taxes should decrease a lot and be more of what you were expecting. Also, stay on top of your mortgage payments and what the bank says you owe. I had some trouble getting my bank to readjust my payments based on the new tax bill from the tax office. It is a bit of a hassle, but it will iron out. Keep us posted!
We just went through this and it was due to the county listing us as non-residents (6% rate). We had to call and have them send us a form to fill out/send back, and they put our status back to resident (4% rate). Not sure why they changed our status, but it happened to several of my neighbors who built new construction in the past few years. We already got confirmation of refund, which only took a week or so.
We are in Simpsonville in the Remington Ranch subdivision. We bought a new construction home in August 2012. I just received a notice from our mortgage servicer stating that our payment was increasing $450 a month due to an escrow shortage. Apparently our taxes went up over $2000 this year. $1230 to $3408 was the increase. They are stating it may be b/c we qualified for the Homestead Exemption and now we don't? I don't think we were ever supposed to qualify for that - we are 27 years old with 1 child. I always expected our payment to vary each year due to the payment being escrowed but this is beyond ridiculous. Does anyone have experience with something like this or know what may have happened? I am calling on Monday but am obviously distraught and looking for any opinions/feedback in the meantime.
We also live in Remington Ranch, and this happened to us too. Check on your tax statement, your property has likely been assessed as an investment property not a residential property. If this is the case, you need to go to the tax office to have this changed. Call ahead, there are specific documents you will need to take with you. I hope this helps!
If you moved here from out of state, they may be taxing you as a second home owner. I received forms in the mail to fill out, and I took them to the real estate tax office to be listed as a perm resident at the lower tax rate. If this is the case, make sure you have been to the dmv and have your new state drivers license in hand with the other required paperwork.
You also need to take along the bank sale price paperwork and appraisals, and fill out paperwork for that, to contest your taxes if they are taxing you above the appraised value.
The county mails a copy of the tax bill to my home ahead of sending it to the bank. I am guessing they do this with everyone. I always check it. I had a small error this year. They took care of the error and mailed me a revised bill but the county told me it was my responsibility to contact the bank, send them the revised copy and make sure they paid the correct amount as they do not send revised billing to the banks. You will have to stay on top of this with the bank/mortgage co. escrow dept if you have a change in the amount you owe.
Thank you all for your input. It turns out they were listing us as a non-resident and rate at 6%. After a lovely afternoon at the tax office, we are now receiving the 4% and are working with our mortgage servicer to get our payment back to normal as quickly as possible. I appreciate your feedback during my moment of panic
Here is what you do. When you receive your ESCROW statement from your mortgage company it will ask for a payment to make up the difference or if no payment is received your payment will go up. These usually happen in February so I am not sure how you know the bank wants more money now. The county will refund the difference (probably to you) and just turn around and mail the bank the excess so that your payment doesn't increase drastically.
I believe you can miss an escrow payment but you should check with your mortgage company first.
My mom is in the process of correcting this now after Dad died. The homeowner's exemption was in Dad's name and it had to be switched to Mom but it couldn't be done before probate closed on Dad's estate which was after the property tax bills were calculated and mailed. Of course, her bank went ahead and paid the higher amount so she got a refund once everything was straightened out. Soon she will send the bank that excess amount that they paid.
If you don't have a will, prepare one now so you don't go through what Mom did to claim her property.
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