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cgdg61606
Little Brother Christopher
Member since 2/07 6815 total posts
Name:
Christine
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Escrow Shortage - Can anyone help me?
We bought a new construction last year. The taxes were estimated at $10,000. A couple of days ago, we got a letter saying that our escrow account is short $7,000. The taxes are now estimated at almost $15,000. How could the escrow account be short though if it was just reassessed? I can understand if the payments are increased because the house has been reassessed, but how could we be short?
Any help would be greatly appreciated!
Thanks!
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Posted 4/30/08 12:35 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Escrow Shortage - Can anyone help me?
We bought a new construction last year. The taxes were estimated at $10,000. A couple of days ago, we got a letter saying that our escrow account is short $7,000. The taxes are now estimated at almost $15,000. How could the escrow account be short though if it was just reassessed? I can understand if the payments are increased because the house has been reassessed, but how could we be short?
As soon as your taxes are reassessed, the mortgage company knows...they probably find out before you do. If your next tax payment is due in October (just as an example), but they haven't been collecting enough $$$ from you to cover that increased payment over the past few months, technically your escrow is in shortage and you need to make it up in time to make the next tax payment.
ETA: $15,000
 I thought my taxes were bad. I hope you applied for STAR and grieved them.
Message edited 4/30/2008 12:43:27 PM.
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| Posted 4/30/08 12:42 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Escrow Shortage - Can anyone help me?
We bought a new construction last year. The taxes were estimated at $10,000. A couple of days ago, we got a letter saying that our escrow account is short $7,000. The taxes are now estimated at almost $15,000. How could the escrow account be short though if it was just reassessed? I can understand if the payments are increased because the house has been reassessed, but how could we be short?
At the time when you close, you are given an "estimate" of what your taxes are, so they calculate that number into the total. Once your house is reassessed, the number is going to go up and more times than not, the mortgage company will not account for the new number. Unfortunately, this happens ALL the time. 
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| Posted 4/30/08 12:44 PM |
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cgdg61606
Little Brother Christopher
Member since 2/07 6815 total posts
Name:
Christine
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Re: Escrow Shortage - Can anyone help me?
Thanks Crissy and Bicosi!
How do I apply for STAR? I've only been a Long Islander for a year... 
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| Posted 4/30/08 12:47 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Escrow Shortage - Can anyone help me?
Posted by cgdg61606
Thanks Crissy and Bicosi!
How do I apply for STAR? I've only been a Long Islander for a year...
Go to google and type in NY Star program or go to the town you live in website and search star. Fill out the application and depending on the town you may be able to fax them the application or you may have to appear personally with copies of you deed, driver's license and a LIPA bill showing your address. I would do this immediately although you will not see the benefit until next year probably Oct if you live in Nassau and Dec if you live in Suffolk.
As for your escrow. A mortgage company has a program that tells them based on your taxes they should have X amount of money in the account as of this day it is always what your taxes are plus a cushion. The $7000 shortage probably gives them enough money to pay your taxes that are due plus have a little more because they then will have to pay your taxes in Jan. They haven't been taking enough money over the past year and therefore have to make up for it. They will give you the option of making one lump sum or paying more every month for a certain amount of months. Your attorney should have warned you that this could be a possibility so that you could have been prepared if the letter ever came. This is one of the reasons I hate escrows!
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| Posted 4/30/08 12:54 PM |
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cgdg61606
Little Brother Christopher
Member since 2/07 6815 total posts
Name:
Christine
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Re: Escrow Shortage - Can anyone help me?
Posted by csorisi
Posted by cgdg61606
Thanks Crissy and Bicosi!
How do I apply for STAR? I've only been a Long Islander for a year...
Go to google and type in NY Star program or go to the town you live in website and search star. Fill out the application and depending on the town you may be able to fax them the application or you may have to appear personally with copies of you deed, driver's license and a LIPA bill showing your address. I would do this immediately although you will not see the benefit until next year probably Oct if you live in Nassau and Dec if you live in Suffolk.
As for your escrow. A mortgage company has a program that tells them based on your taxes they should have X amount of money in the account as of this day it is always what your taxes are plus a cushion. The $7000 shortage probably gives them enough money to pay your taxes that are due plus have a little more because they then will have to pay your taxes in Jan. They haven't been taking enough money over the past year and therefore have to make up for it. They will give you the option of making one lump sum or paying more every month for a certain amount of months. Your attorney should have warned you that this could be a possibility so that you could have been prepared if the letter ever came. This is one of the reasons I hate escrows!
THANK YOU!
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| Posted 4/30/08 12:55 PM |
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jandt2006
LIF Adult
Member since 8/05 1338 total posts
Name:
Teresa
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Re: Escrow Shortage - Can anyone help me?
that happened to us too, i liked the estimated taxes better!
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| Posted 4/30/08 9:04 PM |
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cgdg61606
Little Brother Christopher
Member since 2/07 6815 total posts
Name:
Christine
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Re: Escrow Shortage - Can anyone help me?
Posted by jandt2006
that happened to us too, i liked the estimated taxes better!
You can say that again!!
This STINKS (to put it mildly)!!
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| Posted 5/1/08 10:28 AM |
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