Eating escrow
Something is rotten in the state of Indiana, reports Roberta X:
I discovered my (new) home lender, the guys who picked up Countrywide (who’d bought the note from my original lender), reviewed my real estate taxes (which are just plain nuts in Indiana of late and did go up — should drop next year, once my various exemptions finally kick in) and decided, oopsie, they didn’t really think they had enough in escrow and cranked up their reserve to the maximum amount permitted by law; so they have jacked up my house payments nearly 130% and to keep them from going up 150%, I’m gonna have to front ‘em something over $2K by 1 September.
This is my punishment for gettin’ a nice, conservative fixed-rate loan. Gee, thanks.
If I’ve read this correctly, it’s actually worse than it sounds, since Indiana bills twice a year, but one year in arrears, so Weasel & Co., which presumably has to pay big this fall, will continue to collect big toward a smaller tax bill for much of next year.
I suspect, though, they’d have done the same had our heroine somehow been duped into one of those wicked ARM schemes.
Funny, when my employer asked everyone to pleeeeze forgo a raise this year, times being tough and everything, we all went along; but ask government or a homelender the corresponding question and they’ve suddenly gone deaf. Umm, d000ds, don’t you think you have bled the middle-class turnip just about dry?
They’re in cahoots. Ask Chris Dodd, beneficiary of this sort of cahootery.
Old Grouch »
6 August 2009 · 1:52 pm
It’s actually worse than you say, because Marion County (Indianapolis) is running about 9 months behind the rest of the state. We just received (and paid, July 10th) a “third installment” of 2007-payable-2008 tax. (Normally there are only two payments, but when everything blew up – and people began threatening to start hanging politicians – a year ago, the governor said, “Ignore your bill, pay last year’s amount, and we’ll re-figure what you owe.”). All of that should have been billed – and paid – by last November, but…
As part of the “solution,” they ordered a complete reassessment of the county (gee, for some reason residential properties had been adjusted up, but commercial stuff had not!). AIUI, they planned to get the new assessments done in time to have the (expected) tax reductions (for most people) reflected in the “third installment.” Didn’t happen. So the total of the supposed-to-be-two- now-three payments for 2007 was the original – high – tax. (The increase, I gather, they’re just going to keep. Lucky for them!).
For 2008 (payable 2009), folks in Roberta’s situation are supposed to get a reduction, people like me who’ve had their homes longer, maybe not so much. But because the reassessment hasn’t been finished and the 2008 (payable May 2009) bills – have yet to appear, nobody knows.
Meanwhile, I’m preparing to go argue with the county treasurer, who, in preparing the bill for my just-paid “third installlment,” just happened to fail to apply one of my 2008 payments (I have the canceled checks.). Wonder how many other people his office did THAT to?
CGHill »
7 August 2009 · 7:38 am
If they pulled that kind of crap down here in Soonerland, they’d indeed be hanged.
Locally, 2009 valuations were due out at the last of March; they missed by a few days. The actual tax rates will be determined some time in October; bills will be rendered in November, and checks are due by the end of December. I expect not much change from a $1000 bill.