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[Anabelle Delari]

What is the name of your state? Texas

I purchased a home in October of 2001, and in the process of making monthly mortgage payments. I have been paying $532.00 a month. I have just been recently informed, that due to a rise in taxes and insurance rates, that my new mortgage payment will be $946.00 a month. Is this legal? I cannot afford to make those kind of paymnents on my income. Is there anything I can do to bring my payments back down? Any suggestions welcome.

 

[JETX]

"Is there anything I can do to bring my payments back down?"
*** Based on your post, the increase in payments appears to be to make up your escrow (pre-payment of taxes, insurance, etc.). And with that large an increase, I have to assume that you are also making up for some 'shortage' in the escrow estimates.

Suggestions:
1) Look at your settlement statement (at the time of closing). You will see an estimated escrow amount for taxes and insurance, brokent down to monthly 'payments'. See how the 'escrow estimate' compares to the actual amounts paid.
2) Contact your mortgage company and ask them to review your escrow account and to try to explain why the escrow portion of your payments have jumped so much.
3) Contact your insurance agent and review the amount of insurance being sold. It is not uncommon for an agent to 'overprice' a property and simply sell too much insurance on it. While talking with your agent, ask him/her to quote higher deductibles. The higher the deductible (your assumption of risk), the lower the insurance premium.
4) Review your tax appraisal. File an 'appraisal protest' with your county appraisal district. Do this NOW, since the right to file a protest is a short 30-day window.... and all CAD's are setting valuations for next year NOW!

And finally, you might consider refinancing for a longer note period if you simply cannot afford the correct monthly payments.

 

[HomeGuru]

What is the name of your state? Texas

I purchased a home in October of 2001, and in the process of making monthly mortgage payments. I have been paying $532.00 a month. I have just been recently informed, that due to a rise in taxes and insurance rates, that my new mortgage payment will be $946.00 a month. Is this legal? I cannot afford to make those kind of paymnents on my income. Is there anything I can do to bring my payments back down? Any suggestions welcome.

**A: please explain how your insurance and taxes could increase so much.
What were the before and after figures?

 

[BrokerRE]

It happened to me recently

It seemed like a huge increase, and the reason for it was this.

I had been paying in a smaller amount which was insufficient to cover the house insurance. So when the insurance bill came, the mortgage company had to pay the extra difference. Now this meant that I had an amount I owed them from the previous year.

They offered to allow me to pay it over the next year, which was fine, but this previous amount, added along with the new amount needed to cover the higher insurance meant that for one year, the payment increased substancially.

You can reduce the amount needed for payments by simply paying the deficient amount that had been billed. However the amount that you're payment has increased seems especially high.

I would follow the previous advice in order to check these amounts.

 

[HomeGuru]

Where did the writer go?

 

[Anabelle Delari]

Reply

The insurance amount I was paying was $840.00 per year, it is now increase to $1184 per year. Apparently, when I purchased the home in Oct. of 2000, it was under a senior citizen's homestead exemption. I have filed my homestead exemption for 2001-2002. The Appraisal District explains to me that my home is being taxed on the value it was sold for when I bought it. I have checked the values of the other homes on my street. All other homes are valued approximately $20,000 lower, or more than my home, with the exception of 2 other homes, one of which is currently for sale. Do I still have a basis for filing a protest? To the previous replies I have recieved: you have been a great help! Thanks. Any help is appreciated, as my family of 4 has been devastated financially due to this mortgage payment increase.

 

[HomeGuru]

Re: Reply

The insurance amount I was paying was $840.00 per year, it is now increase to $1184 per year. Apparently, when I purchased the home in Oct. of 2000, it was under a senior citizen's homestead exemption. I have filed my homestead exemption for 2001-2002. The Appraisal District explains to me that my home is being taxed on the value it was sold for when I bought it. I have checked the values of the other homes on my street. All other homes are valued approximately $20,000 lower, or more than my home, with the exception of 2 other homes, one of which is currently for sale. Do I still have a basis for filing a protest? To the previous replies I have recieved: you have been a great help! Thanks. Any help is appreciated, as my family of 4 has been devastated financially due to this mortgage payment increase.

**A: you may be able to file a real property tax/assessment appeal. Check into it.

 

[BrokerRE]

Homes are based on market value

Market value is what somebody is willing to pay for your house.

How you're going to be able to claim that your house isn't worth what you just paid for it, would be a good trick. If you figure that out, let us know.

I would say your chances of reducing the market value to less than what it just sold for on the market, would be zip.

Sorry.

 

[JETX]

As a person who has LOTS of experience protesting tax evaluations in Texas, it is not uncommon for one house to have some variation in pricing from others in the community.

Also, I agree, if the current value shown for your property is your purchase price, you have no chance of changing it.... since that is the first criteria in establishing value.

Finally, the mortgage company did err in not catching that your estimated escrow payment was based on a senior exemption, but that is not actionable.

Based on your posts, the insurance increase was $344 per year (or almost $30 per month). The 'loss' of the senior citizen exemption on the property might AT MOST be another $600 per year ($50 per month), for a total of $80 per month increase (at most $100 per month). That still doesn't explain your original post claiming a $414 per month increase. Clearly, something is still missing. What??

 

[HomeGuru]

Now is the writer missing?