Property Tax Questions

[Maikeru-sama]

Im told that when you pay Property Taxes via Escrow, you are just paying a close "estimate" of what the Property Taxes will be. In some cases, they can be lower or higher.

1) When the Property Taxes are higher than what you paid in Escrow for the year, how long do you have to pay the taxes back? Also, who has the authority to take your house if you can't pay those taxes? The county, mortgage company etc etc?

I am assuming in this type of environment with falling home prices that this isn't a big problem at the moment.

2) When any of the 4 (5 if you live in a county that has a county hospital) taxing entities decide to raise taxes, when exactly do you start paying those increased tax rates. For example, my house is in Murphy but much to my dismay, I live in Wylie's ISD (they have the highest taxes in Collin County). Say in January the WISD tax rate is 1.51 but in March they raise it to 1.60, when would I start paying the 1.60 rate, next calendar year or immediately?

Thanks

 

[Yeagermeister]

Im told that when you pay Property Taxes via Escrow, you are just paying a close "estimate" of what the Property Taxes will be. In some cases, they can be lower or higher.

1) When the Property Taxes are higher than what you paid in Escrow for the year, how long do you have to pay the taxes back? Also, who has the authority to take your house if you can't pay those taxes? The county, mortgage company etc etc?

I am assuming in this type of environment with falling home prices that this isn't a big problem at the moment.

2) When any of the 4 (5 if you live in a county that has a county hospital) taxing entities decide to raise taxes, when exactly do you start paying those increased tax rates. For example, my house is in Murphy but much to my dismay, I live in Wylie's ISD (they have the highest taxes in Collin County). Say in January the WISD tax rate is 1.51 but in March they raise it to 1.60, when would I start paying the 1.60 rate, next calendar year or immediately?

Thanks

If you over pay or under pay you will receive a check or bill for the amount.

 

[Maikeru-sama]

If you over pay or under pay you will receive a check or bill for the amount.

Right, but if you underpay, what is the timeline to pay it back? Are we talking a week, a few months?

 

[Cajuncowboy]

Right, but if you underpay, what is the timeline to pay it back? Are we talking a week, a few months?

Can't speak for Texas but my understanding is that if you owe more than was originally estimated you will get a bill. Then you will have until the deadline to pay the difference. Plus at that time, your payment you are making on your house will go up accordingly, to make up the difference for the next year.

 

[YosemiteSam]

You should really contact a Tax accountant. Asking on CZ is probably not a good idea.

 

[theogt]

Right, but if you underpay, what is the timeline to pay it back? Are we talking a week, a few months?

That just depends on your county and when the bank sends you the bill for the difference. Plan on having to pay taxes up to what you paid for the house. If the county assesses it at a value higher than what you paid, you can dispute it easily.

 

[Cajuncowboy]

You should really contact a Tax accountant. Asking on CZ is probably not a good idea.

Hey now. Yeager asked one time how to do a self frontal lobotomy and look how that turned out.

 

[Maikeru-sama]

You should really contact a Tax accountant. Asking on CZ is probably not a good idea.

Actually, I've gotten some pretty good advice on CZ.

 

[Maikeru-sama]

Hey now. Yeager asked one time how to do a self frontal lobotomy and look how that turned out.

 

[YosemiteSam]

Actually, I've gotten some pretty good advice on CZ.

Not too bright are you?

 

[WoodysGirl]

Can't speak for Texas but my understanding is that if you owe more than was originally estimated you will get a bill. Then you will have until the deadline to pay the difference. Plus at that time, your payment you are making on your house will go up accordingly, to make up the difference for the next year.

It's the same for Texas.

Generally, what I've gotten is the bill to pay the the difference. However, if I don't pay the difference by the deadline, then my mortgage will adjust accordingly...and that will be the amount I pay until the mortgage co. does their annual escrow analysis.

If I pay the bill, the mortgage stays the same.

 

[theogt]

Not to bright are you?

:shoot5:

 

[YosemiteSam]

Hey now. Yeager asked one time how to do a self frontal lobotomy and look how that turned out.

I never noticed a difference in the before and after.

 

[WoodysGirl]

That just depends on your county and when the bank sends you the bill for the difference. Plan on having to pay taxes up to what you paid for the house. If the county assesses it at a value higher than what you paid, you can dispute it easily.

I'm actually trying to dispute mine now. Not sure how much luck I'll have since I've never disputed my appraisal before and don't know what to expect.

I'm only doing it cuz I've gotten a bunch of notices from these people who want to dispute it on my behalf. So I'm gonna take their paperwork and go to the County.

 

[YosemiteSam]

:shoot5:

Touché

 

[theogt]

I'm actually trying to dispute mine now. Not sure how much luck I'll have since I've never disputed my appraisal before and don't know what to expect.

I'm only doing it cuz I've gotten a bunch of notices from these people who want to dispute it on my behalf. So I'm gonna take their paperwork and go to the County.

My real estate agent actually said they would do it for me.

 

[WoodysGirl]

My real estate agent actually said they would do it for me.

You're a recent homebuyer, right?

I've been in my house 9 years, I wouldn't know where to look for my agent...and we didn't part on the best of terms. lol

 

[Yeagermeister]

Hey now. Yeager asked one time how to do a self frontal lobotomy and look how that turned out.

There has to be something there to lobotomize first :laugh2:

 

[Maikeru-sama]

You're a recent homebuyer, right?

I've been in my house 9 years, I wouldn't know where to look for my agent...and we didn't part on the best of terms. lol

Interesting.

 

[AbeBeta]

we didn't part on the best of terms. lol

Real estate agents are hard to like or trust.

Many play this "i'm so ethical" game ... they may not lie to you, but the sins of omission...