topic Re: Incorrect property tax calculated in CD in Mortgage Loans

Incorrect property tax calculated in CD

Anonymous — Tue, 15 Jan 2019 21:38:47 GMT

Hello!

I just received my 2018 Property Tax statement/bill and the tax amount is higher than what was estimated in the closing disclosure.

I bought the house in Aug 2018 and turns out that the prorated amount that the seller gave me credit for included homestead exception from the 2017 tax statement. Per the county office, since the sellers moved out of the state, the homestead excemption rolled off for 2018 and the county billed me the full tax amount. The difference comes out to be $2000, half of which should have been paid/credited to me.

I dont have an escrow. I opted out of it.

I have reached out the title company who I think can pay me the difference or ask the seller to write me a check. Is there something else I can do? I have heard this is a fairly common mistake that occurs in real estate transactions.

Re: Incorrect property tax calculated in CD

CramEiko — Wed, 16 Jan 2019 02:33:05 GMT

I've just completed my first year of home ownership and my escrow had a shortage of $1,800. So since I'm still a ways away from being able to freeze the taxes (age 65), they will continue to rise every year. I think my shortage also had to do with what they had been paying in taxes vs the amount I now have to pay since I paid more for the house than they did. In the last 2 now 3 years I've seen the houses in my price range go up apx $50k less the updaes in the homes compaired to just 3 years ago. That being said I've heard shortages are common unless you pay extra outside your escrow.

Edited to add: I re-read the part about opting out of the escrow but, wouldn't that work out to be the same if there's differences in taxes as they rise? and the time of year the home is sold?

I'm learning so I'd like to hear what the peeps here will say

Good Luck!

Re: Incorrect property tax calculated in CD

Anonymous — Wed, 16 Jan 2019 16:23:40 GMT

Good point. Sorry, I forgot to mention - The appraised value of the house, per the county has remained the same. Hence, the only difference is homestead vs no homestead.

Re: Incorrect property tax calculated in CD

kc0039 — Thu, 17 Jan 2019 21:46:34 GMT

Lenders can only collect what they can prove

Re: Incorrect property tax calculated in CD

JVille — Fri, 18 Jan 2019 01:01:33 GMT

Talk to the Title Co and your Realtor. Not your Lenders fault or problem. If there was a Homestead Exemption then it should have been addressed at COE by your Realtor and the Title Co closing. Your seller is long gone and not their problem either.

Re: Incorrect property tax calculated in CD

Anonymous — Fri, 18 Jan 2019 15:50:13 GMT

Thanks guys, I have reached out to the title company, and they have inturn reached out to the listing agent. In one of the docs, (I will have to check) I think there was a clause about "...if there is an issue or descrepancy then I would let the title company know so they can try and resolve the issue..."

Lets see what happens, I will keep you guys posted.