| Posted By |
Message |
2010inHiding
LIF Infant
Member since 6/13 277 total posts
Name:
|
HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
We have a house in NYC. From what i see on the tax site, the assessment value of class 1 (residential) houses should not increase more than 6% a year so there is not a dramatic increase from year-to-year. This is NYS law apparently.
anyway, just got a letter from mortgage bank that b/c of taxes, our monthly payment is going up 20%+!!! this is becuase of more than 50% of estimate taxes.
does this make any sense?? i feel like the bank tried to bait-and-switch us!!!
what kind of recourse do we have?
HELP!!
|
Posted 11/18/14 12:31 PM  |
| |
|
Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
This sounds like they are increasing your monthly payment to cover potential escrow shortfalls due to increased property taxes.
It's really not a big deal. Money that goes into escrow is yours, not the banks. So there isn't really any "screwing around" by the bank if thats the case. If the city is raising your taxes then you have to pay and the bank wants to make sure there is no shortfall.
|
| Posted 11/18/14 12:44 PM |
| |
|
2010inHiding
LIF Infant
Member since 6/13 277 total posts
Name:
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
the issue is that the bank based our estimated taxes on a certain rate that included lots of exemptions from the previous owner. now that the exemptions are removed, the number has increased substantially.
i feel like we should have been notified of this when doing the mortgage. now that i am looking into it, the information is available. but why am i finding this out now? shouldnt the bank have known the real number to base the taxes on 
|
| Posted 11/18/14 12:47 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
The bank never gets escrows right, they are always behind the times and are the last ones to get notified. If you knew that the state was raising your taxes you probably should have volunteered this info to the bank so they can start taking more money from you. While the bank is the one that actually submits the payments, the burden is still on the homeowner to know what's going on with their taxes.
This is why I never escrow taxes and I always pay the lump sums when they are due.
|
| Posted 11/18/14 1:04 PM |
| |
|
BabyBearA
LIF Adult
Member since 7/11 1254 total posts
Name:
|
HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
This happened to us. When we bought the house, the previous owner was paying $4400 in taxes (we live in Queens) but we didn't qualify for the same exemptions so basically at the end of the first year we had to pay the escrow shortage and then our monthly payment went up by a little bit. The following year I changed insurance providers so the mortgage company issued us a check for the difference we overpaid at the end of year. This year, (year 3 not $6200 in taxes) our taxes went up by $500+ this year so we had a shortage in escrow again - we had the option to pay out the shortage and then our monthly mortgage went up by like $50 OR they absorb the shortage into your monthly mortgage payment and then it goes up by like $150. We chose option 1... You can try to fight it out with them but usually it doesn't help...
|
| Posted 11/18/14 1:40 PM |
| |
|
|
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
We recently had a similar scenario.
We have two separate lots and the bank was only paying taxes on one because they weren't aware of the other.
We opted for them to just raise our monthly payment to cover the taxes.
My initial reaction was the town was trying to get over but I had our lawyer look it over and it was an error not in our favor.
These things always catch up with you.
|
| Posted 11/18/14 2:28 PM |
| |
|
Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
|
HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
this happens every year for me- or close to it.
they dont get the taxes or insurance guesstimates right then you pay for the past year + the future year.
you can pay the difference from the past year directly / oop at once.
|
| Posted 11/18/14 2:38 PM |
| |
|
Mrs213
????????
Member since 2/09 18986 total posts
Name:
|
HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
This happened to us with Bank of America after we closed on the house, got a letter that the payment was going up $500. I almost died. Turns out they had the taxes wrong. I had to get a tax bill from the town and send it to them. It did go up a little but it was more like $50 or something. Like that...
|
| Posted 11/18/14 7:19 PM |
| |
|
Millie3
LIF Adult
Member since 7/13 1280 total posts
Name:
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
Posted by 2010inHiding
the issue is that the bank based our estimated taxes on a certain rate that included lots of exemptions from the previous owner. now that the exemptions are removed, the number has increased substantially.
i feel like we should have been notified of this when doing the mortgage. now that i am looking into it, the information is available. but why am i finding this out now? shouldnt the bank have known the real number to base the taxes on
we had a similar situation. the old owner had a vet discount plus senior citizen discount. OOPS! We did not realize, and few months later our taxes shot up. We fortunately did not escrow our taxes, so we just paid when due. Many friends closed around the same time and had mortgage payments jump up in the first year or 2. Not a good situation
|
| Posted 11/18/14 7:22 PM |
| |
|
BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
|
HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
My REA would of caught this during the buying process to figure out what taxes are. Never assume taxes are taxes as we are all taxed slightly different.
|
| Posted 11/18/14 11:34 PM |
| |
|
|
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
The taxes should have been verified but, I am not sure anyone would have known what your rate may be.
If there was a shortage in your escrow, they usually figure out the difference and add a % to it so the following year it doesn't happen.
|
| Posted 11/20/14 5:10 PM |
| |
|
blu6385
Member since 5/08 8351 total posts
Name:
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
your bank is only allowed to keep a certain amount of money in escrow so they really don't want to take too much but if they do you will get it back.
I made sure at closing that the taxes for the mortgage payment was based on the amount of what the actual taxes are without exemptions so I didn't owe at the end of the year or be surprised with a bigger payment.
I would figure out what you taxes are divided by 12 and see if that's what they are taking out.
Also are you short so they are having you make up for it monthly?
|
| Posted 11/20/14 7:48 PM |
| |
|
CrankyPants
I'm cranky
Member since 7/06 18178 total posts
Name:
Mama Cranky
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
We took our taxes and home insurance out of escrow because of this type of stuff. We didn't want to keep paying into escrow that not changing. We just get the tax bill and pay directly 1x per year.
|
| Posted 11/21/14 11:33 AM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
Posted by blu6385
your bank is only allowed to keep a certain amount of money in escrow so they really don't want to take too much but if they do you will get it back.
This is a fantastic point and very true. They are only allowed to keep so much, so this is why you typically see shortages vs. overages.
|
| Posted 11/21/14 12:16 PM |
| |
|
summertime
LIF Adolescent
Member since 9/10 852 total posts
Name:
|
Re: HELP!! mortgage payment just increased!! (any lawyers and RE professionals, please come in!!)
Posted by Millie3
Posted by 2010inHiding
the issue is that the bank based our estimated taxes on a certain rate that included lots of exemptions from the previous owner. now that the exemptions are removed, the number has increased substantially.
i feel like we should have been notified of this when doing the mortgage. now that i am looking into it, the information is available. but why am i finding this out now? shouldnt the bank have known the real number to base the taxes on
we had a similar situation. the old owner had a vet discount plus senior citizen discount. OOPS! We did not realize, and few months later our taxes shot up. We fortunately did not escrow our taxes, so we just paid when due. Many friends closed around the same time and had mortgage payments jump up in the first year or 2. Not a good situation
This happened to us. We got the vets discount from a previous owner and had to pay it back the next year. So annoying!
|
| Posted 11/21/14 2:49 PM |
| |
|
