Property tax increase upped our mortgage...

[Mrs. H]

So, I understand that this happens yearly, but this time it was INSANE! It pushed our already crazy mortgage up by nearly $200 a month!

Upon calling, we find out that it's the property taxes and the homeowner's insurance that drove it up. Time to shop for another homeowner's insurance company, I guess. The property taxes in this town are sick, though. And we don't even have any kids - not just not in school - none at all- and probably never will!

So, now that we're anxiously waiting for the confirmation hearing in two weeks from today on May 21st - I have questions. We can either have a food budget or the SUV. Bye SUV. Can we amend the plan now? Will that push the confirmation hearing date back? Should we wait to give up the SUV until AFTER confirmation?

I'm so mad - I'm threatening to use one of those angry "smilie" icons. I'll do it, I tell ya!

Mrs. H. is ANNOYED!

GRRRRRRRRRRRRRRRRRRRRRRRRR!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!

(Grits teeth, puts middle finger up at the world - no, not you Princess the Cat - and decides which expletives to use, right here, right now, alone at the dining room table all the while thinking that it would be so nice to put something on the 'happy stories' post IF I ever calm down AND if I can think of a #%&*ing happy story. Spins head around, lays on ground, pukes, dies.)

EDIT - Oh yeah, and why am I a "Newbie" again? I WAS a "Contributor" for a while there.

I feel like I keep trying to fill up this box with hope and good things and someone keeps coming along and turning it upside down on me.

[imbroke2]

I just looked online at our mortgage company's sight and found our increase. It went up $100. That I can deal with. BUT last year when we had filed our CH13 and then called the company to get the exact payment, we found out there was this HUGE amount added-about $400. Apparently they never told us about our escrow shortage. Unfortunately, we couldn't do anything about it as per the lawyer. So we buckled down and have managed-barely at times-but we managed.
As far as you're concerned, it doesn't hurt to ask about amending the plan. Otherwise you may have to look at your other expenses and cut some of those.
Good luck.

[Mrs. H]

imbroke2 -

Thank you for the response. Escrow shortage? OK - I am certainly going to find out about that. It would be nice if that were the problem and if it were fixable, but, as usual the schmuck you get on the other end of the phone doesn't have a clue. I mean, this is Countrywide that we're dealing with here!

I would love to cut the "other" expenses, but the deal here is that we are actually just working more to survive now, even with having filed. Getting rid of the SUV is the only option and it's OK with us. We just need to be sure that it won't create a problem with the bankruptcy.

Thanks again for the answer - if you didn't mention it, then I never would have guessed it.

edit - I guess I know what I'll be doing with the rest of my afternoon - calling the lawyer and calling Countrywide again.

[Mrs. H]

Called the Township and THEY say that it's nothing to do with the property taxes. Per the Township - the taxes should only go up about $20 per month - NOT $200!

Looks like someone is trying to double dip here.

So, waiting for a call back from the lawyer now...

[NDebt]

What happned to us is that last year the escrow account "estimated" our property taxes, too low - so they had a shortage in our escrow account, because they were not charging us enough for the property taxes and insurance. So the mortg co raises your payments to make up for that shortage, AND to make sure they collect enough for the coming year PLUS to have a "reserve" in the escrow account. Stupid I tell you! I feel your pain!

[imbroke2]

I should have said ours was a new house we built in 04; no taxes the 1st year and then taxes in the 2nd. It happened like NDebt said. They didn't figure enough for taxes and when all was said and done we had to come up with an extra $400-no wait make that $550-a month.

[dragonnfly]

The "ecsrow shortage" situation was the straw that broke the camels back so to speak for us. It was the last bill that went up and we decided to consult a few attorneys. Ours is also a house built in 2004 but we had lived on the property since 1989. The reappraise for taxes here every four years luckly they had done it in 03. We didnt get hit with the big bill until Jan 08. Went from 1100 a year to 2400, and was due in 30 days. Thats where our escrow shortage came from and made our payment go up $300. We were already living completly pay check to pay check, couldn't handle any more.

[justplaintired]

The "ecsrow shortage" situation was the straw that broke the camels back so to speak for us. It was the last bill that went up and we decided to consult a few attorneys. Ours is also a house built in 2004 but we had lived on the property since 1989. The reappraise for taxes here every four years luckly they had done it in 03. We didnt get hit with the big bill until Jan 08. Went from 1100 a year to 2400, and was due in 30 days. Thats where our escrow shortage came from and made our payment go up $300. We were already living completly pay check to pay check, couldn't handle any more.

Wow and I thought an increase of $400 a year was bad, that's alot worse. Our house payment only increased about $40 a month due to a shortage. Indiana finally put a cap on property taxes, 1% of appraised value. This means our property taxes will decrease but not until 2009. So that means our house payment won't come down til the end of '09, that's when my mortgage co refigures everything.

[dragonnfly]

I am in dear Ohio which has the school funding a mess, so if you live in a rural area where there are few businesses to pay taxes the resident end up paying for the schools with property taxes and income taxes. Thats a lot of our taxes. They are even talking about another levy on the ballet for next March. I have always voted for the schools, now I am really thinking this is enough already. If I could keep what I pay in taxes I could send my 3 kids to private school.

[Mrs. H]

Thanks everyone -

So, if I'm reading these posts right - then pretty much everyone had this happen BEFORE they filed for the Chapter 13, right? (Well, except for imbroke2.)

See, ours is AFTER filing. We faxed the mortgage bill to the lawyer - which upon review - does show that this is an escrow problem. Now, we need to see what his answer is.

Can't wait because he's the type of lawyer who calls us with bad news on Friday afternoons. That way, we can be even more upset over a weekend when nothing can be done until Monday. Or, for example, he called us the night before Easter. There is no good time for any of this, but come on - give us a little break from the constant grief.

Thanks again everyone, especially imbroke2. I'm hoping for a mistake, of course. I'll keep you posted.