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Old 02-18-2018, 06:40 AM
 
Location: NC
7,603 posts, read 9,588,075 times
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It is SO much easier if the owner gets the tax bills directly and not through another party. The escrow amount seems to get messed up often for that first year of ownership. I guess that direct billing does not usually happen because the lender does not trust the owner to pay the taxes, but whenever possible I would try to convince them to let the tax bills come directly to you, once a year, so you know what is going on.

Sorry for the mess, OP
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Old 02-19-2018, 08:33 PM
 
Location: Tennessee at last!
1,886 posts, read 2,363,488 times
Reputation: 3832
Quote:
Originally Posted by luv4horses View Post
It is SO much easier if the owner gets the tax bills directly and not through another party. The escrow amount seems to get messed up often for that first year of ownership. I guess that direct billing does not usually happen because the lender does not trust the owner to pay the taxes, but whenever possible I would try to convince them to let the tax bills come directly to you, once a year, so you know what is going on.

Sorry for the mess, OP
Depending on who you get the loan from, your credit rating, and maybe an extra fee (sometimes) you can pay the taxes directly. I have for many of my homes, generally just by asking at the beginning of the loan process.
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Old 02-20-2018, 05:41 AM
 
Location: South Carolina
234 posts, read 139,495 times
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A lot of lenders will allow you to waive your escrows--meaning they won't collect for your taxes and insurance--if you put 20% down on a conventional. Of course, they will charge you a small fee for that privilege, usually a quarter of a point.

You can't waive for an FHA and although the guidelines say there's no requirement to collect escrows on a VA, I've never known a lender not to require it.
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Old 02-20-2018, 09:20 PM
 
Location: MID ATLANTIC
8,144 posts, read 20,003,661 times
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Quote:
Originally Posted by LoanChic View Post
A lot of lenders will allow you to waive your escrows--meaning they won't collect for your taxes and insurance--if you put 20% down on a conventional. Of course, they will charge you a small fee for that privilege, usually a quarter of a point.
True, and for whatever reason, not escrowing in the payment on conventional loans in CA is so common, it's not unusual for the lender to waive the fee to pay your own escrows. All I have to do is whine that Bank of America waived the charge and wallah. (I may have to produce an email, but that's easy to get).
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Old 02-21-2018, 04:59 PM
 
Location: Boise, ID
8,047 posts, read 25,308,207 times
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And some banks won't even escrow at all. When I refinanced my loan they said "You will need to pay your own taxes and insurance from now on, we don't escrow those, so make sure you budget accordingly to pay $xx in June and December for taxes and $yy in March for insurance."

But as a real estate office, we always tell our clients (even though that is the lender's job), if you get a refund or a reduction, set aside the refund or keep putting the difference aside for a year because it is very common that they adjust down and then realize it is a mistake for whatever reason and adjust back up.

REALLY common on new construction where they were only taxing the lot previously and now there is a house and the lender estimates what the taxes will be for the house, but then the automatic bank system finds an overage and adjusts down for a year, and then when the taxes go up because there is a house, they don't have enough to cover it.

Does your area not have a public website where you can look up your tax rate? I get an assessment from the county each year that says what value they are taxing. I can then look up the MIL rate on the county site to see my rate. The tax rate changes from time to time, but should stay in the ballpark. Multiply that by the taxable value. Add that amount to your insurance costs and divide by 12. If the monthly escrow withhold is too far from that amount, probably need to contact the bank.
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Old 02-22-2018, 06:31 PM
 
Location: Tennessee at last!
1,886 posts, read 2,363,488 times
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Quote:
Originally Posted by Lacerta View Post
Does your area not have a public website where you can look up your tax rate? I get an assessment from the county each year that says what value they are taxing. I can then look up the MIL rate on the county site to see my rate. The tax rate changes from time to time, but should stay in the ballpark. Multiply that by the taxable value. Add that amount to your insurance costs and divide by 12. If the monthly escrow withhold is too far from that amount, probably need to contact the bank.
California is special because they have an old proposition that holds the county from increasing the taxes more than 2 percent a year. So official records that are on line will show the actual taxed amount on the property. BUT that rate is based on an assessment of the property that has been held down to the 2 percent increase each year, sometimes for DECADES. The actual taxes may be many times what the current records show because the house will be reassessed upon the sale.


There are also many bonds and funded propositions that are folded into the taxes, and those can be hundreds of dollars more or less each year say as old school bonds and paid, then new water assessments are added, etc.
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Old 02-23-2018, 09:13 PM
 
27,251 posts, read 55,669,354 times
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^^^ I bought my home from the couple that had built it more than 50 years prior.

The couple in their 80's and living on a pension was paying $1200 annually in property tax.

The day I bought the tax went to $8800 based on my purchase price...

Not say this is typical but it is also not unusual.

To add another dimension... a home on my street 50% larger and 40 years newer was sold as a foreclosure... it really is nice home... it sold in 2010 and 8 years later... they still have lower taxes than I do and I bought in 2004.

The thing to remember is property is taxed at the Fair Market Value at the time of Transfer
with limited exception... such as a qualifying for a parent/child transfer, grandparent/grandchild transfer should parent be deceased or the possibility of transferring the current assessed value one time when a senior downsizes in county or in counties with reciprocal agreement.
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Old 02-26-2018, 09:08 AM
 
12,018 posts, read 9,318,093 times
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About a month ago I got a $50 check and a $5 deduction for my taxes going down since I got the homestead exemption, so even with the valuation going up it's less than I paid last year. So now I get my home insurance quote and it's going up about $70 so payments are going to have to go back up so they should have just kept the $50 in and the $5 a month extra.
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