Probably the opposite of everyone else's problem.....

[Booner72]

PSS:  I will email my loan officer for you to see what she says if you don't get any answers.  What bank are you using?

[getnthere]

I have tried to explain to the LO that there is no way I can afford that, but she (and everybody else in USAA's mortgage department) keeps saying once you are approved, they can't decline the loan app.  Also, I am less worried about losing the earnest money than about being open to being sued for damages by the seller, which could mean I have to pay the difference between the price I was going to buy the house for, and whatever the price they end up selling it to someone else for. 

[getnthere]

I know that now.  Typically when you get a form with tax written on it, it is a static number, not something to be discussed or verified, it's just the tax, and you shut up and pay it. So I probably just glanced over it to the part that said what the total mortgage payment(incl tax, fees, and insurance) was.

[Anonymous]

I am wondering how much you put down for EMD? Perhaps it would be worth it to walk away? Other than that, maybe you can find a large purchase to put on your credit card, brag about it to your lender, and then return it when this is all over. Best of luck to you. I'll keep my fingers crossed.

[Booner72]

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@Anonymous wrote:

I am wondering how much you put down for EMD? Perhaps it would be worth it to walk away? Other than that, maybe you can find a large purchase to put on your credit card, brag about it to your lender, and then return it when this is all over. Best of luck to you. I'll keep my fingers crossed.

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YES, This is the best idea I've heard.  Do you need a new car that will really screw up your DTI?

[GregB]

I wish my house payment was only 45% of my gross income! But that is due to lower income due to divorce and the economy.

I believe that you are going to be in a difficult position. I am assuming there is some error involved in the amount of taxes that would be in effect after you buy the house. There is going to be some shared liability between you, your real estate agent, the loan officer, etc. Figuring out the liability could be difficult. However, the seller probably has little or no liability so is not going to be happy if you back out. The ernest money might not be the biggest problem.

Are the taxes on this house going to be that different from another house that you would want? Did the county make an error? WHY did the taxes go up that much?

[getnthere]

Yeah the taxes vary widely depending on where in the city you are buying. But this is all previous year taxes we are talking about, not a new tax that will take effect after I buy, so the mortgage company should have had the numbers much earlier, not on the day we are supposed to be closing.  I really don't know where they got the original numbers they had on the paperwork from.

[Booner72]

So what's going on getnthere?  Are you still under contract with this house?  Last year's taxes will be paid for you and the new tax bill should come out in October.  You can take your appraisal and purchase contracts to the county assessor's and "fight" the taxes so you are taxed on the value of the house now, not last year, or two years ago etc.  IDk if that will even help.

Curious about what is going on though.

[Anonymous]

This also depends on who chose the title company.  In some cases, if the buyer chooses the title company, then you are stuck.  The issue must originate from a seller's agent in order for the contract to be voided, and in some cases, the error must have been in bad faith.  I am willing to bet that there is something in the contract that states that the taxes are estimated and that they may increase or decrease.

[Anonymous]

I would check with a local free legal or mortgage clinic.  Seems absolutely ludicrous that any lender would approve a mortgage at 45% of gross income knowing that you can't afford the significant increase.