Tominator Posted March 4, 2011 Report Share Posted March 4, 2011 Good news: Looks like due to retirements in our district I will be employed for at least another year. Bad news: Escrow report from our mortgage holder says we owe $600 more PER MONTH for the next year to make up for a deficit in the the property tax from last year. Sure hope my wife read that wrong, I have a hard time believing anyone could afford an extra $600/month. No wonder so many people are going into foreclosure. Stupid banks. Sorry Kev. Quote Link to comment Share on other sites More sharing options...
toddyboman Posted March 4, 2011 Report Share Posted March 4, 2011 good deal on the job.... YIKES on the other.......How in the world did THEY make that big of an error to start with? Quote Link to comment Share on other sites More sharing options...
MUDRUNNER Posted March 4, 2011 Report Share Posted March 4, 2011 We had a similiar problem with our esgrow the year after we moved in. The bank was only putting $100/month into esgrow for property taxes, and on top of that the county had the property assessed for $30,000 more than we paid for it just a year earlier. Unfortunately for us the county sent the property tax info card to our old address and we never got it, and by the time we found out it was too late to contest it. They post it in a newspaper also, but it's a subscription paper that we don't get, so we had no idea they had it assessed so high. Besides being short the previous year, they had to adjust our esgrow so that it would be right for the next year. So besides paying an extra $250 a month to get back caught up we also had another $250 a month to make it right for the next year.It's a bad deal. I hope you get it straightened out. Quote Link to comment Share on other sites More sharing options...
Ohiobucks Posted March 4, 2011 Report Share Posted March 4, 2011 Bad news: Escrow report from our mortgage holder says we owe $600 more PER MONTH for the next year to make up for a deficit in the the property tax from last year. I don't get it. Did they set up your escrow level? You are paying what they told you to pay, and due to their miscalculations, you have to go back and make up for their loss last year? In our case, we owned our property for about a year or so before we built our house, and the tax level stayed the same for a year or so after we built our house. Basically, for that year, we were paying taxes on the property value only - not the property and house value together. They adjusted it the following year, but never came back on us make up for that lost year. Even if they did, it wouldn't have been even close to $7200 per year. But we built half the house you did..... Quote Link to comment Share on other sites More sharing options...
Tominator Posted March 4, 2011 Author Report Share Posted March 4, 2011 I don't get it. Did they set up your escrow level? You are paying what they told you to pay, and due to their miscalculations, you have to go back and make up for their loss last year? Yep, that's what I'm thinking Tom. Either that or 1 of 2 things happened here: either Heather read the statement wrong, or.....they're making up for the reassessed value all at once, which, if that's the case, is going to put a REAL pinch in our household. In our case, we owned our property for about a year or so before we built our house, and the tax level stayed the same for a year or so after we built our house. Basically, for that year, we were paying taxes on the property value only - not the property and house value together. They adjusted it the following year, but never came back on us make up for that lost year. Even if they did, it wouldn't have been even close to $7200 per year.That happened to us too. They adjusted the escrow by $125/month last year. But we built half the house you did..... Yeah, 2,500 vs. 3100 is half. Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted March 4, 2011 Report Share Posted March 4, 2011 Glad to hear the job situation is ok. Don't know what to tell you on the house bud, sorry to hear that. Hope somehow you get things straightened out. Rates are down now, they said when we were working the details on our loan the rates would never be lower. Glad we took the type loan we did on our land to build our house, one close on the front end and no escrow or timelines to worry about. Farm Credit Service has been awesome for us, fixed 15 year loan, banker called last summer and asked about conversion and I paid a one time fee to convert the rate down a half point. Then this February they cut all customers loans by .35 percent. Our monthly payments are around $70 less now than they were when we signed, gonna save us over $10 grand over the life of our loan. Downside on our house has been the lies we were told by the seller and all the problems/issues that have resulted, been way too much to go into ranting about there and probably best I don't since we may still end up in court. Quote Link to comment Share on other sites More sharing options...
stevebeilgard Posted March 4, 2011 Report Share Posted March 4, 2011 you owe an extra $7200. per year on taxes??? my gosh, how much are your property taxes or how big is your house. that's terrible. a 2000 square foot home should only have a bout $3,000 in taxes yearly, total. something is out of line here. anyway, the good news is real good, and the bad news is real bad. i think we're in for many years of real "adjustment" here in america. i read in the national news this morning that 86% of americans want their elected officials to do what they were elected to do. that's both the democrats and the tea party folks. we'll see.... Quote Link to comment Share on other sites More sharing options...
WHISKEYSWAMP Posted March 4, 2011 Report Share Posted March 4, 2011 I have to agree something doesn't sound right... My yearly escrow report usually states that I need to pay a one time amount, usually less that $200, to keep my mortgage payment as is. Hopefully thats the case for you as well. My property taxes and insurance went up this year, so I'm guessing there'll be an escrow adjusment made at some point. Quote Link to comment Share on other sites More sharing options...
Tominator Posted March 4, 2011 Author Report Share Posted March 4, 2011 Glad to hear the job situation is ok. Don't know what to tell you on the house bud, sorry to hear that. Hope somehow you get things straightened out. Rates are down now, This doesn't have anything to do with the house payment, this is the tax payment. The land is actually paid for, but the house obviously isn't. you owe an extra $7200. per year on taxes??? my gosh, how much are your property taxes or how big is your house. that's terrible. a 2000 square foot home should only have a bout $3,000 in taxes yearly, total. something is out of line here. Yep, according to our county, our tax liability for the year should be just shy of $6000. Quote Link to comment Share on other sites More sharing options...
The_Kat Posted March 4, 2011 Report Share Posted March 4, 2011 Outrageous! My place costs a whopping 452$ a year. I would fight whoever set your escrow account up. You paid as agreed. They should be liable! Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted March 4, 2011 Report Share Posted March 4, 2011 This doesn't have anything to do with the house payment, this is the tax payment. The land is actually paid for, but the house obviously isn't. Yep, according to our county, our tax liability for the year should be just shy of $6000. Bad news: Escrow report from our mortgage holder says we owe $600 more PER MONTH for the next year to make up for a deficit in the the property tax from last year. Our property taxes are totally seperate from anything to do with the bank, we pay them out of pocket each and every year, opted not to have the bank pay for that or any insurance. Guess I somehow misunderstood the above and assumed your mortgage payments were being tacked onto for the difference and your payment going to your bank? Is that wrong? Sorry for the troubles you are having Chris, and sincerely hope you get things straightened out. Quote Link to comment Share on other sites More sharing options...
Tominator Posted March 4, 2011 Author Report Share Posted March 4, 2011 Our property taxes are totally seperate from anything to do with the bank, we pay them out of pocket each and every year, opted not to have the bank pay for that or any insurance. Guess I somehow misunderstood the above and assumed your mortgage payments were being tacked onto for the difference and your payment going to your bank? Is that wrong? Sorry for the troubles you are having Chris, and sincerely hope you get things straightened out. Yeah, by law, we were required to escrow the property tax and home insurance through the bank. That's a whole different rant. I can see the logic behind the escrow account. Too many people weren't paying their taxes or carrying insurance so if the place burns down or you don't pay the tax, the bank is out the money, but really, it's a racket for people like my wife and I who actually take responsibility and pay what we said we would. Luckily we escaped PMI since we put enough down on the loan to begin with, otherwise, we'd be paying that too. Quote Link to comment Share on other sites More sharing options...
Ohiobucks Posted March 4, 2011 Report Share Posted March 4, 2011 The more I think about this, the more I'm thinking your wife is confused.....there is no way you are going to be asked to pay an additional $7200 per year on top of your already $5900 per year tax burden. No way. Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted March 4, 2011 Report Share Posted March 4, 2011 Yeah, by law, we were required to escrow the property tax and home insurance through the bank. That's a whole different rant. I can see the logic behind the escrow account. Too many people weren't paying their taxes or carrying insurance so if the place burns down or you don't pay the tax, the bank is out the money, but really, it's a racket for people like my wife and I who actually take responsibility and pay what we said we would. Luckily we escaped PMI since we put enough down on the loan to begin with, otherwise, we'd be paying that too. Our tax statement for our tracts all come directly to us from the county clerk. Our tax apprasier has been chomping at the bit to make our adjustment, been out twice in the last few months, fortunately he promised they will prorate our taxes this year. While I am curious to see what it is gonna appraise for I am not looking forward to see the jump we take with this house, guessing our tax rate will probably triple. Our house is only 2400 sq ft, basement adds 1900+ under roof of which I plan to finish out about a quarter of in the next year or so. Quote Link to comment Share on other sites More sharing options...
RangerClay Posted March 4, 2011 Report Share Posted March 4, 2011 Good news: Looks like due to retirements in our district I will be employed for at least another year. Good for you!!!!!! I will find out in a couple weeks if I will have a teaching job next year. Quote Link to comment Share on other sites More sharing options...
Tominator Posted March 4, 2011 Author Report Share Posted March 4, 2011 The more I think about this, the more I'm thinking your wife is confused.....there is no way you are going to be asked to pay an additional $7200 per year on top of your already $5900 per year tax burden. No way. I think that's the point though. The bank wasn't collecting for the $5900 burden. They were collecting for the $3000 burden. The one and only time I hope you're right, and I'm wrong. Quote Link to comment Share on other sites More sharing options...
MCH Posted March 4, 2011 Report Share Posted March 4, 2011 We don't escrow taxes and insurance and we don't do PMI. And like Kyle said, Oklahoma property taxes are low compared to Ohio's. I pay just under 1,000 per year and I live in town, in one of the wealthier neighborhoods. People who live outside of town rarely pay over $500 per year(in this county). What concerns me is that if those tax numbers you're quoting are correct, then that's only an additional 240 per month. I wonder if its a combination of three things: higher property taxes, higher insurance premium and a higher interest rate? Quote Link to comment Share on other sites More sharing options...
MUDRUNNER Posted March 4, 2011 Report Share Posted March 4, 2011 The more I think about this, the more I'm thinking your wife is confused.....there is no way you are going to be asked to pay an additional $7200 per year on top of your already $5900 per year tax burden. No way. Here's how ours went down....we were $3000 short for the previous years taxes, which made us owe an additional $250 a month to get caught up for the previous year. On top of that they had to adjusted our esgrow so that they would have the correct amount for the next years taxes and not be short again, which was the same amount of $250 a month. So an extra $500 a month and $6000 all total just to get back to even in 12 months. After the following year when our esgrow was correct our payment dropped the $250 we were paying back to get our esgrow even. Sounds like you might be in the same situation. If your esgrow was $3600 short you will have to pay $300 a month to repay what you were short, and another $300 a month so it's not short the following year. I hope it's not the case, cause it really put the clamps to us for a year. Quote Link to comment Share on other sites More sharing options...
Rhino Posted March 4, 2011 Report Share Posted March 4, 2011 Yep...gotta agree with Tom...something sounds real fishy. Can't see how they come up with an additional $7,200 tax burden even if they only collected on $3K rather than $5.9K last year. Either your wife is reading it wrong or you need to look into contesting the assessed value of your home. Quote Link to comment Share on other sites More sharing options...
Tominator Posted March 4, 2011 Author Report Share Posted March 4, 2011 What concerns me is that if those tax numbers you're quoting are correct, then that's only an additional 240 per month. I wonder if its a combination of three things: higher property taxes, higher insurance premium and a higher interest rate? Three things is right. Bank was way off on the estimated tax, they have to make up for the shortfall, and they have to build the buffer back up. Wife was right, extra 6 hundo for a year. :angry: Not happy. Hawaii 2011.....Buh bye. Quote Link to comment Share on other sites More sharing options...
MCH Posted March 5, 2011 Report Share Posted March 5, 2011 I'd be pissed too! I'd want to know how the bank could be so far off with the property tax estimate? Was it intentionally lowered in order to entice you to finance with them? Could the county have it assessed wrong? Your county should have a website that lists property taxes. Compare yours to nearby residences of similar size and age(if possible). If I'm not mistaken, weren't you in the Coast Guard? I know Oklahoma has certain exemptions for military personel. Quote Link to comment Share on other sites More sharing options...
Tominator Posted March 5, 2011 Author Report Share Posted March 5, 2011 Actually, since I've had time to cool down and run the numbers with the bank and the county, they're very close to what they said we'd be paying at closing. They're within $20 actually. We were only paying property tax, basically, because the house wasn't assessed until last June. Now that the house has been assessed, we owe the tax, no biggie. Because of this, we knew we would owe more, so we've been setting aside a fair amount of money since June to make up for it. The real bite that still irks me is that stupid buffer they have to, by law, build into the escrow. I have to call the bank Monday to see if they will let us pay off the shortfall in a lump sum, which will reduce the monthly sting quite a bit. Sorry if I got you all riled. I got a text from my wife early in the morning, and I sat and stewed about that info at work all day. Now that I've seen the letter, it makes sense, and we'll be OK I'm sure, but that buffer is going to take my Hawaii money. :angry: Quote Link to comment Share on other sites More sharing options...
The_Kat Posted March 5, 2011 Report Share Posted March 5, 2011 Ok, so you knew about this coming all along lol? I was about to advise you to seek legal counsel to pursue the financing bank on your house. No way in **** I'd pay an extra $600 a year for THEIR mistake. I dunno about people in OHIO, but in Oklahoma an extra $600 a month would ruin most families. Heck my mortgage payment with PMI, insurance, taxes, and the payment with interest is just a few hundred over that lol. Sorry about Hawaii. Come to Oklahoma instead lol...shoot a dinky deer there. Quote Link to comment Share on other sites More sharing options...
Flintlock1776 Posted March 5, 2011 Report Share Posted March 5, 2011 I hope it all works out. If I told you my property taxes you all would faint. Nothing mentioned thus far comes close by multiples:jaw: You have to be careful with banks. They sent a foreclosure on my hose some years back saying I was not paying my mortgage payments at all. Found out they were taking my payments and applying it to my folks property across the road. I should have sued over the stress that caused. Quote Link to comment Share on other sites More sharing options...
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