Escrow - taxes

I closed on my house almost one year ago. At the time, I was told the taxes were just about $12,000. And the escrow amount was in line with what the taxes were plus the annual cost of homeowners insurance. I came home today to a very nice surprise - an excess escrow check for around $3000. And a statement that my mortgage payment was going DOWN (fixed rate), because there was too much being taken out for escrow every month. But the new amount shown for the monthly escrow amount is not enough to cover the taxes and insurance. So, I called the bank and they said the taxes are about $8000 per year. I'd be very happy if that were the case, but when I looked at the tax bill, that's the amount the taxes were with the Enhanced STAR and Veterans exemptions that the previous owners had. I do not qualify for those exemptions.

So, the bank is showing the taxes as being about $8000 and now will not be taking enough out each month. I do not want to wind up with a shortage next year because they are not taking enough out every month, but they insisted they are taking the right amount. So, other than just putting money away every month (or saving the check I got today) to cover this next year, is there anything I can do? Thanks!

Re: Escrow - taxes

You can send them a copy of your tax bill without the Enhanced Star.

Escrow - taxes

we tried to keep the veterans exemption and 2 years later we got a letter saying we had to back-pay everything since we moved in. it sucked- call the bank and have it corrected

Escrow - taxes

If they won't correct it, you can add extra to your escrow account. Maybe calculate how much you think they're off, and come up with a schedule to add that much. If you add too much, you'll get an overage check again next year, but at least you know you'll be covered.

Also as mommy2be716 mentioned, you may want to save some on the side in case the county asks for the exemption back-paid. Since you're technically not entitled to it, they can ask for it though they don't always.

Escrow - taxes

Mail the check back to them and mark it apply to escrow. That way you will apply the money back to the escrow account. Legally they have to balance the account once a year and any overage will be refunded. You can also continue to pay the same amount on the mortgage, again marking it to apply an amount to escrow.

Re: Escrow - taxes

Escrow - taxes

Is the town still giving you those exemptions? If so I would call them and ask to remove them. I also had to back pay from previous owner exemptions.

Re: Escrow - taxes

I would send in money each month to apply it to escrow so you don't end up with a big shortage. On my mortgage statement I can send in extra to be applied to the principal or escrow.