My f****ng mortgage just went up $800 more WTF?

[Dave13]

Just to visit. This is my home.

[gsd656]

Originally Posted by Gone In 3

Why do your taxes increase when your property value decreases?

Even though your "value" is adjusted down, the effective tax rate always keeps on going up. Each municipality will have different items on a tax bill, so unless you are comparing neighbors tax bills it will be apples to oranges.

Some good advice already:
Review bill for errors.
Make sure exemption(s) are applied.
Appeal or hire an attorney to appeal your assessment (this will not help on this bill)
Call your mortgage company to extend the payback period.


A few years back I did a refinance and did not setup an escrow for RE taxes, it was nice. I was disciplined enough to save up for the fall bill and relied on my Fed Income tax refund for the spring bill. This is not for everyone, but it eliminates the extra few dollars that the mortage company includes in your escrow calculation to cover fluctuations.

I feel your pain and good luck.

[Noodles]

Originally Posted by Dave13

My inlaws has their taxes jump from $1150 to $1210 for the year. Crazy!!

Reason #55 to live in Florida.

Still not worth it.

[Vcook]

look at the bright side, you didn't anticipate the tax burden but you've now got an interest free loan from your lender to cover the difference. This is the nice thing about escrow.

[Kruz]

True...but Im sure going forward they built in a comfortable overage.

[Grasshopper]

I got the same thing. The 2nd installment tax bill will reflect a lower tax bill which will in turn lower your escrow and lower your mortgage payment through your lender.

It is pretty fucked up that the value of our homes have gone down so much and these assholes up the taxes.

Common sense would say that the value of the home is directly related to the taxes you pay. They are crooks. Fucking crook county.

[Derick]

curious question, but does dupage have the same problems?

[Vcook]

Originally Posted by Derick

curious question, but does dupage have the same problems?

We still dont know the details of this issue but all counties are the same. I bet this guy either has a new build where the builder underestimated the taxes or the taxes changed dramatically due to the development of what was previously an empty lot. Or the bank miscalculated the escrow. His taxes did NOT magically go up 800 bucks a month, there is more to the story here. Tax rates fluctuate and so do home values but he hasn't given us the whole story yet.


all counties in this area operate more or less the same, different rates, same process.

[Derick]

Originally Posted by Vcook

We still dont know the details of this issue but all counties are the same. I bet this guy either has a new build where the builder underestimated the taxes or the taxes changed dramatically due to the development of what was previously an empty lot. Or the bank miscalculated the escrow. His taxes did NOT magically go up 800 bucks a month, there is more to the story here. Tax rates fluctuate and so do home values but he hasn't given us the whole story yet.


all counties in this area operate more or less the same, different rates, same process.

I was just more curious of the tax hikes in dupage, I know that crook is higher, but a significant margin, but is dupage as bad? (looking to buy in the near future, jsut trying to get some info)

[gsd656]

Originally Posted by Derick

I was just more curious of the tax hikes in dupage, I know that crook is higher, but a significant margin, but is dupage as bad? (looking to buy in the near future, jsut trying to get some info)

You'll have similar issues. It does not help anyone to compare county to county. It will all depend on specific areas. Plus, depending on the area, you may actually get a significant to you benefit from the RE taxes you pay, such as better schools, roads, etc.

Without doing the specific research, I would say the DuPage used to be better then Cook, but with the developments over the last decade or two, I would bet that they are head to head.

[jrock]

Originally Posted by Vcook

We still dont know the details of this issue but all counties are the same. I bet this guy either has a new build where the builder underestimated the taxes or the taxes changed dramatically due to the development of what was previously an empty lot. Or the bank miscalculated the escrow. His taxes did NOT magically go up 800 bucks a month, there is more to the story here. Tax rates fluctuate and so do home values but he hasn't given us the whole story yet.

I don't think he said they went up $800 a month. I think he is implying they went up $800 a year.

$800 a month would be HUGE.

[JoJo]

Originally Posted by Vcook

We still dont know the details of this issue but all counties are the same. I bet this guy either has a new build where the builder underestimated the taxes or the taxes changed dramatically due to the development of what was previously an empty lot. Or the bank miscalculated the escrow. His taxes did NOT magically go up 800 bucks a month, there is more to the story here. Tax rates fluctuate and so do home values but he hasn't given us the whole story yet.


all counties in this area operate more or less the same, different rates, same process.

Could be that he got a very good price on his house and now they are not taking that into consideration. That's what happened to me. My house was a POS in a nice area so the low purchase price kept my taxes a lot lower. After three years they don't take purchase price into consideration and the same sq ft rate applies which results in higher taxes.

[elroy121]

Originally Posted by Derick

I was just more curious of the tax hikes in dupage, I know that crook is higher, but a significant margin, but is dupage as bad? (looking to buy in the near future, jsut trying to get some info)

ive owned in dp co for 2 1/2 yrs, tax has not gone up more than 50-75$ a year

[Vcook]

Originally Posted by jrock

I don't think he said they went up $800 a month. I think he is implying they went up $800 a year.

$800 a month would be HUGE.

If it was previously undeveloped land the first year tax bill would be X, then the following year would be the first tax bill for the developed land which could easily be 2X. Between that jump and the underfunded escrow payback it could easily go up 800 a month till the underfund loan was paid off, then it would drop a somewhat. This happened to me when I bought a new property that was built on previously undeveloped land.

[JoJo]

Originally Posted by jrock

I don't think he said they went up $800 a month. I think he is implying they went up $800 a year.

$800 a month would be HUGE.

it can easily go up that much. A friend paid an extra $1000 per month. Not only do you have to pay to catch up, you also have to fund it for the future payment.

[Cerk]

Originally Posted by Pilotx1

60 dollars?

Right?

[Chicago Performance]

Yeah I think their formula for proper ass raping is to always have at least half of your taxes in escrow at all times, even after the half year payout, so in effect, at each payout, there is a full year's taxes in the bank, and they pay half biannually.

[tnat]

sometimes i think it would be better to rent and just buy fuckin gold krugerands as a investment as from what ive read somewhere the real estate market in most areas will only appreciate approx 1% a year, im already down 40k so ill never see my home worth what i owe, i should just walk, itll take them over 2 yrs to throw me out, i bank $1700 a month in cash for 2 years, store that cash, get evicted, pull a Burntrash and move the family into my moms basement for a year file bk, then rent for another year then buy a place that now its value is more realistic and not like the ass rapin i took when i bought it at inflated values.

[Chicago Performance]

Originally Posted by tnat

sometimes i think it would be better to rent and just buy fuckin gold krugerands as a investment as from what ive read somewhere the real estate market in most areas will only appreciate approx 1% a year, im already down 40k so ill never see my home worth what i owe, i should just walk, itll take them over 2 yrs to throw me out, i bank $1700 a month in cash for 2 years, store that cash, get evicted, pull a Burntrash and move the family into my moms basement for a year file bk, then rent for another year then buy a place that now its value is more realistic and not like the ass rapin i took when i bought it at inflated values.

This is a solid plan!

[SENGVIN]

Well it isn't new property, The house has been there for over 30years, and it went up $717 a month so it has to be miscalculated the escrow on Bank part! And I'm going to kill somebody...

[gsd656]

Originally Posted by SENGVIN

Well it isn't new property, The house has been there for over 30years, and it went up $717 a month so it has to be miscalculated the escrow on Bank part! And I'm going to kill somebody...

Before you start making "friends" at the bank, do some math first so that you can have a rational conversation.

Did your taxes go up?
How much?
Did the bank have to cover the overage?
Did your insurance go up?
How much?

[jrock]

Originally Posted by SENGVIN

Well it isn't new property, The house has been there for over 30years, and it went up $717 a month so it has to be miscalculated the escrow on Bank part! And I'm going to kill somebody...

That's crazy huge. What was your yearly tax before this "change?"

[Chicago Performance]

The bank could have not realized the shortage until now, and it could have been that way year after year. This last year they did that to me, and my biz bldg. went up a grand a month for a year until they had their cushion.

[gsd656]

Originally Posted by Chicago Performance

The bank could have not realized the shortage until now, and it could have been that way year after year. This last year they did that to me, and my biz bldg. went up a grand a month for a year until they had their cushion.

Did you not see that on your statements?

I did not think that I was the only OCD person that actually pays attention to this stuff. But then I forget that this is CLSB and the ballers do not get phased by a $1K/month extra out of their account.

[Chunk]

weird my property tax bill went down and I didn't do a thing.

[Chicago Performance]

Originally Posted by gsd656

Did you not see that on your statements?

I did not think that I was the only OCD person that actually pays attention to this stuff. But then I forget that this is CLSB and the ballers do not get phased by a $1K/month extra out of their account.

Hell yeah I saw it. I sure didn't want to bring it up, then the payments would have started sooner.

[gsd656]

Originally Posted by Chicago Performance

Hell yeah I saw it. I sure didn't want to bring it up, then the payments would have started sooner.

[chibeemer]

Originally Posted by Grasshopper

I got the same thing. The 2nd installment tax bill will reflect a lower tax bill which will in turn lower your escrow and lower your mortgage payment through your lender.

It is pretty fucked up that the value of our homes have gone down so much and these assholes up the taxes.

Common sense would say that the value of the home is directly related to the taxes you pay. They are crooks. Fucking crook county.

I see the argument but here is the logic. Essentially, the value of your home is only the % share you pay in tax compared with all the others in your tax district.

To be sure, government levies taxes based on expenses. So if you have a government budget of $100 for example and you have two home owners comprising the district its a fact that together those homeowners will have to pay the $100 tax.

However, homeowner 1's property in year X is valued at $1000 and homeowner 2's property is valued at $500. Logic then dictates that homeowner 1 will pay more than homeowner 2 but together they will still pay $100 which covers the budget.

In year X+1 homeowner 1's value decreases to $500 and homeowner 2's value stays the same at $500. Therefore in year X+1 both will pay equal shares of $50 toward the total taxing entity's budget of $100.

So while value is important it is a floating share of the total taxing body's levy, where all property owners essentially have a share of the burden based on individual property value.

The long and the short of this is that government has a budget and regardless of property values increasing or decreasing that total tax must be paid. So yes, property values can fall and you may have an increased tax burden. In fact, ALL property values for ALL properties can fall and EVERYONE may still see bigger bills. That's because the government's budget doesn't shrink.

[chibeemer]

Originally Posted by Derick

I was just more curious of the tax hikes in dupage, I know that crook is higher, but a significant margin, but is dupage as bad? (looking to buy in the near future, jsut trying to get some info)

Same thing in DuPage. I'm in York township and across the street is another township. My taxes are twice the properties across the street but they are much different homes. The homes across the street go to a different school, they are 2-3 BR, 2 BA ranches, and on smaller parcels so it's only reasonable that they pay less

My taxes are nuts high in York but here is a comparison on the York tax to the tax on my previous home in Chicago:

Home: home is 3x the size and 86 year newer than Chicago home. Lot is 3x larger.

Schools: York goes to an awesome school and we have school age kids. The Chicago property was 2 blocks from a "good" CPS but there wasn't any guaranty our kids would have been accepted (busing program).

Police: I called my local police on a suspicious vehicle and the car was sent by the time I rounded the block on my walk. Chicago 911 sometimes never answered the phone even when some kid was getting the stuffing beat out of him in my front yard or when my neighbor chased his daughters boyfriend down the street with a carving knife on Father's Day.

Park District: In York I can get my kids in any class they want. If the class is full they simply add another class. In Chicago we'd have to wake up at 5am and enter all our data into their website and if you hadn't made the purchase by 6:01am (a minute after going on sale) your kid wouldn't be enrolled. You had an option to wait in line but the lines wound around the block 2-3x for a 5 year old's gymnastics class. Price in York for gym class $65, price in Chicago $14. Attendance in York 100%, attendance in Chicago: just my kid. What's the point of all the pressure/lines if no one shows up.

Tax: I pay twice the tax in York I did in Chicago but I feel I get a whole lot more.

My taxes in York actually went down the past 2 years but that's because the assessor was valuing our house prior to it's sale when we purchased it. After the purchase I checked the tax records and scanned our HUD1 form and sent it to the assessor who re-assessed it at a MUCH lower rate.

[Morrand]

In Cook County, you can go to this web site to find out the details about how your property was assessed:

http://www.cookcountyassessor.com

It helps if you have your PIN from either your tax bill or your deed, but there's a search by address option too.

When the data screen comes up, look it over and see if the value and property information make sense. If your township is open for appeal, you can start that through the Assessor's site; if not, you'll have to wait.

Make sure you're getting the homeowner's exemption, if you qualify. Details are, again, on the site.