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Old 04-30-2008, 12:51 PM
 
16 posts, read 58,515 times
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I'm closing on my home on Friday and have a question about escrow. I plan on escrowing the property taxes. This is a new home so the 2008 taxes were based soley on the land and not the improvements. So my payment for awhile will only take in that amount. I'm new to the whole property tax thing and am not sure how the billing works.

The bill for the land only for 2008 is $600. So they are basing my escrow on this. I know the taxes for 2009 will be much, much more and my escrow account will be short. I know my payment will go up but who is responsible for the difference that first year?
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Old 04-30-2008, 01:41 PM
 
69,372 posts, read 53,591,148 times
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Quote:
Originally Posted by BlondieeAggiee View Post
I know my payment will go up but who is responsible for the difference that first year?
I bet its the property owner...
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Old 04-30-2008, 01:54 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
Reputation: 1007
the lender will do 2 things.

1. send you an invoice when it's raised
2. raise your mortgage payment to cover the future escrow

Quote:
Originally Posted by BlondieeAggiee View Post
I'm closing on my home on Friday and have a question about escrow. I plan on escrowing the property taxes. This is a new home so the 2008 taxes were based soley on the land and not the improvements. So my payment for awhile will only take in that amount. I'm new to the whole property tax thing and am not sure how the billing works.

The bill for the land only for 2008 is $600. So they are basing my escrow on this. I know the taxes for 2009 will be much, much more and my escrow account will be short. I know my payment will go up but who is responsible for the difference that first year?
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Old 04-30-2008, 04:55 PM
 
Location: Richardson, TX
10,119 posts, read 16,716,797 times
Reputation: 24600
You could also save your money and pay the entire shortage at once when you are notified of it, if you would prefer your monthly payment to not rise as much.

Last edited by Debsi; 04-30-2008 at 05:25 PM..
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Old 04-30-2008, 05:24 PM
 
Location: Great State of Texas
86,093 posts, read 69,870,497 times
Reputation: 27519
You will be notified when the next years appraisal values go out. The mortgage company will get it and adjust your payment.

Happened to me when I built my home..closed in September but the tax was for the land only. The next year when appraisal/tax estimates went out a copy went both to me and the mortgage company. I then got a letter from the mortgage company about new adjusted escrow payments starting the next month.
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Old 04-30-2008, 07:43 PM
 
16 posts, read 58,515 times
Reputation: 12
Quote:
Originally Posted by HappyTexan View Post
You will be notified when the next years appraisal values go out. The mortgage company will get it and adjust your payment.

Happened to me when I built my home..closed in September but the tax was for the land only. The next year when appraisal/tax estimates went out a copy went both to me and the mortgage company. I then got a letter from the mortgage company about new adjusted escrow payments starting the next month.
HappyTexan, what happened when your escrow account didn't have enought to cover the taxes? Did they just pay it, and your new increased payment paid it back?
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Old 04-30-2008, 07:45 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
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depends on the amount.
If it's a significant increase, they will send you a bill AND will raise your escrow.
That's what happened with me.

Most ppl just get their escrows raised

Quote:
Originally Posted by BlondieeAggiee View Post
HappyTexan, what happened when your escrow account didn't have enought to cover the taxes? Did they just pay it, and your new increased payment paid it back?
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Old 04-30-2008, 07:51 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
Reputation: 1007
the bill will give you like 30 days to pay it.

I'm not sure if they paid it for me...but I'm thinking that they did.
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Old 04-30-2008, 08:13 PM
 
Location: Great State of Texas
86,093 posts, read 69,870,497 times
Reputation: 27519
Quote:
Originally Posted by BlondieeAggiee View Post
HappyTexan, what happened when your escrow account didn't have enought to cover the taxes? Did they just pay it, and your new increased payment paid it back?
Here in Texas we get next years proposed taxes in April. I got a letter about adjusted escrow payments from the mortgage company to catch up in anticipation of the increased taxes.
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Old 05-03-2008, 03:07 PM
 
Location: NC close to the MTs and near the lakes.
2,766 posts, read 4,877,812 times
Reputation: 967
Quote:
Originally Posted by Debsi View Post
You could also save your money and pay the entire shortage at once when you are notified of it, if you would prefer your monthly payment to not rise as much.

When ever that happened to us we also had the option to pay the amount up front or have a higher mortgage payment since they would up my escrow acc't.
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