So this happened to my friend. It's not your loan (as long as you have fixed interest rate) the loan itself is the same price. It's your escrow. Your taxes and insurance are estimated. If the taxes are raised and cost more than estimated you end up owing the difference. They try to offset this by having extra funds from closing held in your escrow account, but sometimes the taxes go up by way more than anticipated. 🤷♀️ Hope that helps
@NoHomerS
2 ай бұрын
Why would this come as a surprise a year later to the buyer? Wouldn't someone notify the buyer?
@tonyamathis6667
2 ай бұрын
@@NoHomerS the government doesn't tell you what your taxes will be till the end of the yr, so they loan company doesn't know until then.
@dmitc01
2 ай бұрын
No that does not help
@ellensunden2778
Ай бұрын
Still, she should have warner Veronica that this might happen. She didn't explain it at all to her in the beginning, ergo Veronica should not have to pay the $5,000. That, or Veronica could sue for non-disclosure. Either way, they screwed her over.
@melissasaint3283
Ай бұрын
When our taxes or homeowners insurance change, and something needs to be fixed, typically there is communication between the entities, and we get a notification. Maybe that is legally required in our state but not all states? Also, we have monthly data on what's going into and out of our escrow every month ON our mortgage statement. Doesnt everyone have that? Or no?😮
@user-nf4pn5do4f
Ай бұрын
Omg i remember these phone calls when I worked at Bank of America 😭😭.. people would be pissed!
@GiantMeteor2024
Ай бұрын
I knew mortgage retention specialists. One worked at BOA. He despised that place.
@lynnmoss2127
Ай бұрын
yes exactly! This bank BS needs to change. They explain in bank math
@stephanielcowart6867
Ай бұрын
It's actually explained thoroughly on your paperwork. I've never had to question why there was an increase.
@lynnmoss2127
Ай бұрын
Yes Stephanie, The issue is the increase. When my insurance hadn’t changed and the property taxes changed a whole $200 for the whole year, somehow there is several thousand dollars in escrow shortage, pushing the monthly up. Our payment has about doubled in eight years. It doesn’t make sense
@gene8447
Ай бұрын
@@lynnmoss2127 pssst. They're stealing for you.
@xlgeek
3 сағат бұрын
@@lynnmoss2127your escrow is based on the prior years payments.for ex, if you bought the house from someone with a tax exemption or discount, you’re first years payments are going to be way lower than what they should be because the amount of taxes that you would owe is not known when the contract is first signed. That’s why new home buyers get fucked on their 2nd year. Banks aren’t stealing from you, but loan officers should be educational about this type of stuff. Can’t tell you how many angry calls I’ve had over this lmao. I completely get peoples frustrations but that’s how it is ¯\_(ツ)_/¯
@Lustvig
Ай бұрын
It is IMPERATIVE to make sure you get all the numbers before closing. It is crucial to know what the current owner has been paying in taxes, and as important how long they have lived there. In Michigan, we have the Headlee Amendment which caps the rate of taxation to no more than the rate of inflation. So, as a new owner you pay that tax rate from your escrow the first year. Then the municipality reassess your taxable rate and you must then pay the full new rate from your escrow account. We had an issue where the prior owner was 90 years old and had been in the house since it was built in 1952. So DECADES of taxes being capped (since 1978). Our 2nd year there, our taxes skyrocketed and being on fixed incomes, we were forced to move out of the city and into a manufactured home park. Embarrassing to admit, but ... learn from us.
@meltdown6165
Ай бұрын
I wish more people would admit their faults so everybody can learn from them. Respect!
@stephanielcowart6867
Ай бұрын
This had nothing to do with closing though. If you're a homeowner. You know your tax are reassessed every year at a certain time of year. This is also true for homeowners insurance being renewed. As your numbers change so does your escrow if you have one. This is why they have her 2 options, pay the money on a lump sum payment or increase the monthly mortgage payment.
@davel4030
7 күн бұрын
Similar issue here, my grandma had a house built in 77 and was capped, when she passed we had to sell it but the process took 2 years. The taxes that 2nd year were jaw dropping.
@saaythong
Ай бұрын
Property taxes went way up.
@deamonmist
2 ай бұрын
I'm angry by proxy.
@melissad.1885
2 ай бұрын
Taxes and insurance must have gone up. It happens.
@maxine2564
Ай бұрын
And taxes increase when your property value increases as deemed by that taxing agency.
@xandercrew6088
Ай бұрын
Do taxes and insurance go up every year this much if you buy a home?
@melissad.1885
Ай бұрын
@xandercrew6088 Not all of the time, but depending on your area, it can be significant. There are several variables that impact that, such as crime, weather, etc, for insurance. For taxes, you would want to pay attention to city council and state voting, etc.
@srki22
20 күн бұрын
So? Why would that impact your mortgage? If the taxes increased, wouldn't you just pay that tax yourself? What does it have to do with the bank?
@melissad.1885
20 күн бұрын
@srki22 Most people have their taxes and mortgage rolled into one payment. A portion of what you pay goes into an escrow account to pay your taxes each year. So if your taxes increase, the overall payment would also increase to make sure the escrow account has enough in it yearly to pay the taxes due.
@kimberlyfamoly5863
Ай бұрын
Unfortunately they are estimated based last year’s taxes and insurance. Our insurance went up about 50% because of our areas wind and hail damage, and not just home owners insurance but auto insurance.
@SethBeck
3 күн бұрын
Texas?
@kimberlyfamoly5863
2 күн бұрын
@@SethBeck close Oklahoma, still lower that Florida.
@jayjanzee9059
2 ай бұрын
My brain hurts!!! 😳😳🤣🤣🤣
@lynnmoss2127
Ай бұрын
I'm surprised the bank rep is not sitting that protective plexiglass
@attitudeproblem6462
Ай бұрын
I wanna jump through this damn screen right now…😤😤🤬🤬
@JenniferSmith-mo9xt
9 күн бұрын
Same and I'm literally buying my first house june 25th. Now I'm confused lol
@attitudeproblem6462
9 күн бұрын
@@JenniferSmith-mo9xt Congratulations, truly. I hope you never run into this phuckery.
@user-gh4vd5rj7l
Ай бұрын
the explanation is simple: taxes and insurance are estimated. your property taxes go up, your insurance premium goes up, your escrow account is underfunded (i.e. short). all the loan servicer can do is estimate the cost of taxes and insurance and have you pay what they estimate. this is not unique to 2024, it has always been this way.
@jamihamilton5651
Ай бұрын
This is very common where the escrow doesn't cover the total amount of insurance and taxes. BUT $5000 of shortage is a huge amount. They should have notified her well in advance of such a huge shortage.
@xandercrew6088
Ай бұрын
Why do you property taxes fluctuate so much? It seems volatile if in a year you can end up owning thousands in taxes beyond your fixed bank loan
@user-gh4vd5rj7l
Ай бұрын
@@jamihamilton5651 agree that is a huge shortage, but loan servicers do not monitor your taxes and insurance costs in between the payments or as an annual audit. That is your responsibility to make sure your escrow account is collecting enough to pay the insurance premium and property taxes.
@user-gh4vd5rj7l
Ай бұрын
@@xandercrew6088 Taxes can increase dramatically in some places. Adjusted valuations, bond initiatives, special assessments, surcharges and a myriad of other ways to take more of your money through property taxes. At a 3% tax rate adding 300K in valuation can raise your taxes from 15K to 24K.
@stephanielcowart6867
Ай бұрын
@user-gh4vd5rj7l exactly. When I get the reassessment letter, I compare my old with the new in advance. It's our jobs to be prepared as homeowners. I learned this the hard way.
@NWTejas
29 күн бұрын
A "Dreamer" starts to wake up to the American Dream/Nightmare...
@debrh.b
12 күн бұрын
It sounds like a nightmare and a ponzi scheme .
@d.rucker6563
Ай бұрын
Omfg. This is facts! Fuck Mortgage companies and Escrow
@fitgraphisva
Ай бұрын
PAY the extra quarter-point at closing and manage your escrows yourself. In this way you will know your P&I will never change on a fixed-rate loan, and you can budget extra funds every year knowing property taxes and insurance will rise.
@xandercrew6088
Ай бұрын
Do you’re just expected to have extra ~10K on top for taxes every year to what you already owe the bank?
@fitgraphisva
Ай бұрын
@@xandercrew6088 Yep, that’s the idea. I budget an extra 10 percent every year for anticipated increases in both real estate taxes and homeowners insurance.
@xandercrew6088
Ай бұрын
@@fitgraphisva so 10% of the house value needs to be paid yearly ON TOP of the bank loan? Thanks for confirming just seems crazy to me, basically in 10 years you could buy another house with just …taxes?
@fitgraphisva
Ай бұрын
@@xandercrew6088 Apologies…I was unclear. I budget an extra 10 percent for just the insurance premium and real estate taxes based on local trends. If I am paying $900 this year for homeowners insurance, I will budget an extra $90 per month for the following year’s anticipated 10% increase. Most years, it doesn’t increase as much as I have budgeted, so I have some left over.
@stephanielcowart6867
Ай бұрын
@xandercrew6088 he's overestimating. Taxes vary based on tax, county and city. Sometimes the amounts don't actually change bc the value didn't change. My adjustment was around 1k last year and it's the same thing year per the reassessment I've received. As a homeowner, it's good to prepare for the unexpected though. 5k or 20k isn't normal though unless you did major renovations or the value of homes in your area increased drastically.
@tottyRICE
Ай бұрын
Holy shit this literally happened to me too!
@jpendowski7503
8 күн бұрын
Oh man I’ve got flashbacks. My escrow bank sent refund checks 3 years running, saying we had over the legal limit in escrow, then end of the year we owed double what the refund ended up being. Luckily we kept the money (the second time) and were prepared.
@lynnmoss2127
Ай бұрын
This is what happens ALL THE TIME
@benwagner5089
Ай бұрын
Taxes get increased by $5000 in a single year? That would be like your property increasing in value from 400k to 800k in 12 months. I'm guessing they completely forgot about depositing into the escrow account, so now they're charging the lump sum at the end of the year to balance their books. Oh, and the monthly amount is going to get raised from $2150/month to $2600/month now that escrow is being paid into.
@stephanielcowart6867
Ай бұрын
You're only considering taxes and not considering insurance. Also home values are changing by 100k-200k yearly in same areas. If your taxes increase, your insurance will too since it'll cost more to repair/rebuild the home.
@danni9867
20 сағат бұрын
When I sold my last house the mortgage company sent keep a check for $4k because they over charged me in escrow. Had I never sold the house they would keep me over paying. As a result, I don't pay my tax and insurance I escrow on my new house. Instead I pay that on my own but for the exact amount. No more, no less.
@missnlahi
3 күн бұрын
It's the system!!! Insurance and property tax is out of control.
@mrs.h2051
22 күн бұрын
Lost my house bc of this. How many ppl can afford a double payment or higher?
@aluisious
26 күн бұрын
This is what happens when you don't read the paper you're signing. If there's too many papers, pay a lawyer to read them for you. If you're not willing to do that, don't sign the papers.
@thehiddensilentone1795
6 күн бұрын
The pure frustration is immense.
@eryndelosreyes8224
19 күн бұрын
They avoid any accountability and pretend like you're dumb for not being informed. Your fault for trusting them to give you the right information 🤯
@mosart7025
3 күн бұрын
We got notified that our escrow needed to be adjusted on both properties (we have a rental). So they both went up some. Then at the end of the year we got a check with it all back for the rental property. What the heck was that all about?
@rythmicjea
2 ай бұрын
Someone can't do math. If the amount owed is $2149 and the homeowner pays that, why is she short and where is it coming from? That's what needs to be explained. However, it sounds like the payments aren't being applied to the principal as well as the interest.
@roxcyn
2 ай бұрын
Look at Tony's description in the comments. That's the reason. The mortgage rep was TERRIBLE because she didn't explain it well at all.
@melissasaint3283
Ай бұрын
It's not Bout the loan, or principle or interest...escrow pays out homeowners insurance and property tax.... The...loan officer?....is doing a terrible job communicating that. Also, in my state, communication happens when those things change, so I am confused why that didn't happen here.
@brianmack3665
Ай бұрын
This is a very common occurrence when a loan officer squeezes a buyer into a home. The escrow containing “estimated” costs is surprisingly under quoted. Now the homeowner needs to pay the missing funds plus the new budgeted amount based on actual bills. This gets even worse if something like property insurance or tax assessments spikes the costs.
@jackseve
Ай бұрын
You need to look at how mortgages are structured and you will understand.
@jackseve
Ай бұрын
www.youtube.com/@VanntasticFinances
@SethBeck
3 күн бұрын
It’s why I established my own escrow with an interest rate of 4.5%.
@IME-qn2eu
29 күн бұрын
Veronica is supposed to be so smart. 🤭 Your mortgage is made up of different costs: the principal monthly loan payment, the interest, insurance, and finance fees. Your mortgage principal can be $1,000, but after the interest rate for your specific loan is added, plus the taxes and finance fees, it could end up being $1,300 that you actually have to pay each month to your bank or whoever is mortgaging your loan. And if escrow underestimated the projected taxes (which can fluctuate from year to year), your monthly principal is always going to be the same, but the total monthly payment can be slightly different from one year to the next because of the tax variances.
@rileymcphee9429
7 күн бұрын
If you're not following the math, $2149 per month, with an escrow shortage of $5,212, means the banker underestimated the escrow by $434.33 per month. And if she can't make up the difference by April 1st, the bank is going to add that difference onto her future mortgage + $316.67; which is either the interest, or additional estimated escrow.
@Zerpersande
Ай бұрын
The question that needs to be asked is WHY another $5K is owed. How was that determined/calculated?
@stephanielcowart6867
Ай бұрын
It's based on the insurance payment and the newly assessed tax Penryn got the home. This is generally common knowledge. Home values increase all the time so the insurance and taxes do as well.
@srki22
20 күн бұрын
@@stephanielcowart6867 I don't understand. What is connections with the tax and home loan? Aren't you responsible for the tax payment?
@stephanielcowart6867
20 күн бұрын
@srki22 in a lot of cases in the US, yes you're responsible to pay it but it's included in your escrow payment. So it can affect your mortgage payment, not the home loan itself.
@srki22
20 күн бұрын
@@stephanielcowart6867 Can you exclude taxes in your escrow payment?
@ninamason5877
3 күн бұрын
My mortgage company is regulatly 2,100 over and won't issue me a check even though it's illegal to hold more than my note in escrow. So they insist I skip a month of payment.
@wongles
Ай бұрын
This happens when you have a shitty originator/MLO, don't be mad at the servicer or the escrow account. Escrow is a good thing. You just got a loan that was originated badly. You can get longer escrow spreads for shortages of that size though. And you can shop around for home insurance just like any insurance, or contest prop tax increases, if that's what went up.
@demetriusoconnor8149
28 күн бұрын
So True
@Gilder-von-Schattenkreuz
2 күн бұрын
This is Generally a Problem with the US System of Buying a House. You are taking a Loan. The Bank Literally Owns the House. And so the Bank Pays all the Taxes and other stuff for the House which is then added to Your Loan. And if the Estimates are Off or some of these Cost went up in the Meantime. Your Loan will not be Reduced as much as Planned or it may even go up. Worse. You are then Paying Interest on it because You effectively Loaned the Money to Pay these Cost. In Germany if You Buy a House on a Loan. The Bank does not Own the House. The Bank instead gets an Entry that it can Take the House from You as Collateral if You Fail to Pay Your Debt. But the House still belongs to You. This Includes that if You See You cant Pay the House You can Sell the House Yourself to Pay Off the Loan before the Bank takes away Your House. (And before You ask. The Bank has a First Buyers Right here to Prevent Abuse. So if You attempt to just Sell the House Super Cheap to a Relative and then Declare yourself Bankrupt to Cheat the Bank for both House and Money. What will happen instead is that the Bank Buys the House Super Cheap likewise if You Sell the House for enough to Pay the Loan Off the Bank wont care and be happy they dont have to do the Work of Selling the House to Recoup the Loan) The Importand bit however is. All Taxes and other Cost are going straight to You and are NOT part of Your Downpayments. So whatever Rate You got is Fixed and Correct. As any External Cost are Bills You got to Pay Yourself just as if the House was your own. And is not Loaned to You by the Bank.
@samsay7791
2 ай бұрын
😂😂😂😂 true story 🤣🤣
@sibusisomaseko1607
2 ай бұрын
Interest rate is linked to prime rate
@driaw7104
Ай бұрын
Get it in writing..
@stephanielcowart6867
Ай бұрын
That's not how taxes or insurance work. It is in writing but that's not going to help in any way. If taxes and insurance increase, you can shop around and ask for a reassessment by disputing it, but the lender doesn't control that.
@mindsterv
21 күн бұрын
It happened to me 2 years in a row. Even with additional principal payments
@amycopeland1701
8 күн бұрын
Yikes!!
@bettyc.parker-young1437
19 күн бұрын
Pay your loan payment, insurance payment and tax payment all separate. Just make sure you are setting the funds aside. That way no surprises.
@gold-in-melanin7488
18 сағат бұрын
I know all about this!
@lordbizcuits
3 күн бұрын
So i know this is a skit but for future reference how does one go about not having this happen to them or preventing this besides trying to save money on the side. Would paying more than mortgage help?
@EAprima
2 күн бұрын
I wonder if this also applies to the UK and Japan?
@garym7937
2 күн бұрын
Pay your own escrow. Pay for your own insurance
@ozzymandius666
Ай бұрын
So, in the USA, the banks handle all the property taxes and insurance? That is totally insane.
@Lustvig
Ай бұрын
No, its an option. You can pay out of pocket all at once during summer and winter tax seasons.
@stephanielcowart6867
Ай бұрын
Depends on the type of loan, however the homeowner has access to all this information before the lender in lots of cases. The customer can also change their homeowners insurance as they see fit. They can dispute the tax assessment as well.
@DragosMoga
7 күн бұрын
This bs is exactly why you shouldn't deal with any kind of banks or loans until you get yourself a bit of stability but the world we live in right now does what it wants. Let you live freely with the collar of loans and morgage on your neck. And people berate those that live a couple more years with their parents to avoid this situation 😂
@thethpian
19 күн бұрын
I know this is written to be hilarious but I have to deal with an accountant at work like this. It's like she doesn't understand the simple question you are asking or why you as the end user just needs the bottom line answer. Every answer she gives demands additional scrutiny. A simple question like what is my budget for the year and how much do I have left to spend doesn't get two numbers. That's a question requiring two numbers. Why aren't you giving me two numbers?
@drb215
5 күн бұрын
why do they keep jumping from 2149 to 2150....pick a price and stick with it....i hate this.
@MegaCyberleader
2 күн бұрын
what bank was that? so I NEVER use my money there.
@craigpierce7996
Ай бұрын
I started paying about $200 more per month when I purchased my home. It keeps this problem at bay and reduces your loan amount surprisingly faster. Veronica needed to look at her mortgage statement to see she was going in the hole. Her bad, this time...
@thorr18BEM
Ай бұрын
I remember the total monthly for mine was $400. Inexplicable things did happen sometimes and I would magically be short and/or suddenly find myself paying $500/month instead without understanding why. What a world.
@wherami
28 күн бұрын
This made me angry and ragey lol
@angusmackaskill3035
18 күн бұрын
Now my unemployed wife will divorce me and get half
@geoffklassen9402
2 ай бұрын
Where is the shortage coming from?
@thorr18BEM
Ай бұрын
Often insurance and taxes.
@lovely0482
Ай бұрын
MAKE IT! MAKE SENSES!!! Wtf
@redemption101caleb
6 күн бұрын
That seems predatory as fuck
@360milliondollars
17 күн бұрын
It as if you speaking to Doordash customer support for drivers... LOL
@mikesolomon2636
4 күн бұрын
If you don't understand escrow, you should not buy a house.
@idontusee
Ай бұрын
It's really easy to explain that the insurance and taxes increased and this is the new amount. It takes a few minutes to explain. Smh
@PixelSubstream
12 күн бұрын
"So im getting a mortgage from a person who doesn't know how to do math. Fml
@brilliantbrownbeauty
3 күн бұрын
It’s that smile that’s irks my entire being. What’s funny about an average working class person getting a $5000 bill due upon receipt or $751 added to their mortgage? I understand how this happens; just hate this for us is all.
@nwj03a
20 күн бұрын
Is this stealing from another channel, or vice versa? It is literally the same as “dark tales”.
@dreawoo3119
7 күн бұрын
OMG every freaking year! I’m like you lieeeeeee
@Nick-Nasty
Ай бұрын
Wtf is going on here lol
@message91
29 күн бұрын
Stolen Audio
@medusagorgon8432
Ай бұрын
This is BULL!!!🤬
@ohmygosh6176
26 күн бұрын
This is why you should not get a female relator. They just don't bother during the extra research to find out what else you have to pay for
Пікірлер: 157