Property tax and Escrow balance question

jmorr34 · Joined: 04 Sep 2009 Posts: 1

2008 prop tax was $1398 for new condo. Realized I didnt file exemption so I did it in the extended period. Was told I would get a bill for the new amount in a few months and it would be due shortly after. In 12/08 an amount of $1398 was withdrawn from escrow. Did not realize until now that it was basically payment for the property tax. No I never received a bill and didnt put two and two together.

New mortage payment just came out - increasing monthly note to account for negative escrow balance and "projected" new property tax b/c it must maintain a certain balance. The "projected" is the $1398 based off of last year whereas I just chcked online and for 09 it is now $692.

I know in the long run I will get the money back from the new projected, but I cant handle the increase in note right now.

Also, do you think I can fight the initial exemption filing and withdrawal from my escrow. Maybe if I produced something to the mortgage company about the new amount and showed that they paid too much.

What do you think about this?

m2c · Joined: 03 Aug 2005 Posts: 937

Probably it will work as to rate but there would have to be something in writing and firm as to new amount. Overpayment is another issue. A refund may be sent to you or to the lender and, believe it or not, the country will normally not verify the amount of the refund. So you may have to be satisified with the existing "shorted" balance and have the refunded amount (if sent to the lender) accounted for and returned as an escrow surplus next analysis.

Lenders don't like to do "interim" escrow analysis but the "aggregate" analysis is not that hard to do and most have an Excel sheet that will do the trick. Expect the lender to use a current amount of homeowners (condo is a H06 -- interior -- policy) so if there was an increase, expect that to be reflected.