Until the day you received a notice from your lender, demanding $9,000 due to a shortage in your escrow account. Your first reaction is what the heck?!? This has to be an error because this can’t be right. You have been paying into your escrow account every month. How can it now be short $9,000?
At the time of closing, your lender established your escrow account and calculated your monthly payments based upon the tax assessed value of the property. On January 1, your house had not been built. Since Harris County Appraisal District determines the value of the property on January 1, the property was only tax assessed for the value of the lot. It was NOT tax assessed for the value of the lot and the value of the house.
December 31st rolls around and your lender pays the real estate taxes on your Spring Texas home out of the money in your escrow account. The taxes get paid. There is no shortage in the escrow account. Life is Good!
January 1st arrives and the Harris County Appraisal District (HCAD) assesses your property for the value of the lot AND the value of the house that now sits on the lot. HCAD does not inform your lender of the new tax assessed value of your property. Your lender does not adjust your monthly payments to escrow the increase in the tax assessed value of the property. Your monthly escrow payments remain calculated at only the value of the lot.
December 31st rolls around and your lender pays the real estate taxes on your Spring Texas home out of your escrow account. This time there is NOT enough money in the escrow account to pay the real estate taxes. Your lender sends you a notice demanding you immediately pay $9,000 to cover the shortage in your escrow account. Life is NOT Good!
When you close on a new construction home in Spring Texas ask the closer the tax assessed value of the property. If the property is only tax assessed at its lot value, then monthly set aside the real estate taxes for the value of the house. If you don’t, you will get an unpleasant surprise from your lender demanding you cover the shortage in your escrow account.
Let me just start by saying that Jill made the daunting process of both selling my old home and finding... read moreLet me just start by saying that Jill made the daunting process of both selling my old home and finding my current one more pleasant than could have been expected. Throughout the entire process she was honest, easy to communicate with, and patient. When it came time to sell my old home, I contacted Jill and she met me at home at took the time to get to know me, why I was wanting to move, my timeframe. She showed me the comps she already prepared, and explained the entire process. We then did a walkthrough of house where Jill identified items that needed to be addressed to make the house more appealing (paint, fixtures, minor repairs). Once those issues were addressed, and the house was listed, it received multiple offers and Jill took the time to narrow down the best options and then explain what each one meant in detail with regards to the offer amount, type of financing and what it could mean down the road when it came to inspections and appraisals. Once we came to a decision on the right offer, the rest of the selling process moved along smoothly and Jill was quick with updates each step of the way.As the closing date of my old home approached, the focus shifted to finding a new home. Jill was very accommodating during this time as my fiancé and I had a very small window of time during each day where we were both available for showings. Jill was routinely able to get the showings scheduled during this time, often on short notice, and was helpful at pointing out things both positive and negative that we may not have noticed otherwise. No example better illustrated this than when we found a home that appeared to check all the boxes. During the showing, Jill pointed out the proximity to a major road, and the road noise during morning and evening traffic, and even brought up potential future expansion of road and surrounding area. Despite this warning, we were so enamored with the house that we went ahead and put in an offer. While waiting to find out if the offer would be accepted, I heeded Jill’s advice and checked into expansion projects, and decided to drive back by the house during rush hour to check on the road noise. We ended up pulling the offer and Jill seemed genuinely relieved. I appreciated the fact that she was willing to be as adamant about the issue as she was when she could have easily let us make that mistake, and made the sale. A short time later we did find the home that checked all the boxes without any road noise or any other issues, and the purchase process went as smooth as the selling process had been for my old home. Even months after closing, Jill continues to be helpful as she was able to provide quality handyman references for some small projects that I needed done. I’ve thoroughly enjoyed working with and getting to know Jill and I can’t recommend her enough. read less