Home Coach Team's Houston Real Estate Blog

Real Estate Tax Dangers

Home Owners with escrow accounts are often unaware of how much is paid for real estate taxes, by their mortgage companies, out of the homes escrow account. Ignoring this is dangerous and is one of the causes of foreclosures. If the assessed value of the home goes up, or the tax rate rises, there is not enough put aside monthly to pay the property tax at the end of the year. It could be months before the Mortgage co. informs the owner of the deficit. This is very prevalent with new home purchases. If the taxes are escrowed based on unimproved property value the owner could face paying not only the deficit but an additional amount added to their mortgage payment to make up  the current and future shortage. If the homeowner is not made aware of this shortage in a timely manner they may be in a hole too deep to strategize a solution. Homeowners without an escrow account are reminded at the end of each year how much their tax liability is. Paying the yearly taxes at one time can be a siginificant reminder to verify the County Tax Assessors valuation of the property and challenge the valuation if necessary. Complimentary area valuations are available at www.HomeCoach.com see Market Snap Shot.