Real Estate Info & FAQ

I am not sure what it is like in your part of country, since property taxes are different everywhere, but here in SC, this is the month that lenders do their annual escrow analysis.  It is inevitable that I will receive phone calls this month from my past clients regarding their tax bills.

Here is what happens.  The lenders analyze each loan for which they collect escrow payments (taxes and insurance).  They look to see if they are collecting enough to pay the bills due or if they are colelcting too much.  By the end of the month, clients will start to get letters stating that their total payment is going to either rise or fall, based on this analysis.  In addition, if the tax or insurance payment went up, and there were insuffcient funds to cover the debt, the lender went ahead and paid it, but will expect to be paid back.  This payback be either one lump sum or stretched out over the nest 12 months.

So, if you get a letter from your in January or February stating that your payment is going to increase by $10 or $20 dollars, this is the cause.

Of course, if the payment absoltuly skyrockets, to the tune of $100 per month or more, I would recommend some investigation on your part.  There is typically an assignable cause for this sort of variation.  Maybe your insurance shot up due to a claim, or your property taxes got re-assesed, something like that.

Of course you can email me and I will help as much as I can with any questions.  Email john@bigbearmortgage.com

Have a great day.