Title says it all - my mortgage is going up $420 PER MONTH, starting in July. That's a new car payment (which we won't have the luxury of affording now). This is because of last year's property re-evaluation greedy money-grab from my state and/or county in Ohio, so I'm basically getting taxed on unrealized gains.
If this had happened to my brother, who is on a very fixed income, he'd literally be homeless (he's in TN renting from our cousin, thank God for him). How are old folks supposed to come through this? So many will lose their homes, and the real rub is that monthly rental costs are even higher than our mortgage payments so they can't count on moving into a rental rather than have their home foreclosed.
Sorry to vent. My youngest graduates from high school next spring so we'll definitely be voting with our feet.
Elections have consequences at every level. Your local and state elections have a way bigger impact to daily life than federal elections.
Heck, that's pretty bad. We received our insurance tax bill for our new house WE BUILT OURSELVES. It doubled because they say our county reevaluated the value of our house. On one hand I'm quite pleased to be a millionaire on paper, but on the other hand I cannot afford the $5k expense for county taxes and insurance premiums. I figured a thousand bucks for each would be easy to put into our budget, but this is almost three times what I had anticipated.
Not to go and cry about our situation, but just trying to help another frog see that other folks are in the same boat. Hang tight folks, we will be seeing reduced costs within a year's time. Hopefully home expenses will begin to fall too.
The biggest scam is a private central bank printing money and then our government increasing taxes at the same time because the currency now less valuable.
Sorry to hear about the latest DS money grab affecting your family and others in your area.
Just a question about how - or why - this happens. Typically when you get a mortgage (at least where I've owned) you have a contract that basically states that you borrowed $XX and agree to pay it in monthly installments over a period of several years or decades. Typically, if valuations rise there's absolutely no impact on your mortgage. If, however, valuations decline, the bank/lender may ask for money to cover their exposure if the home is now worth less than what you still owe them on the mortgage. I've actually never heard of mortgages rising on valuation increases though property taxes generally do. Even with an adjustable rate it's still tied to what you borrowed (minus what you've already paid in principal), not to the property value on valuation increases.
It's not adjustable rate, basically the mortgage company pays the insurance and property tax out of our escrow but because our valuation went up so much they anticipate a shortfall and therefore are raising our mortgage to cover it.
This is, sadly, just "communist lite" currently. I have a feeling it's going to get worse. I wish you and your family the best of luck navigating this storm and relocating. As I mentioned to another anon looking to relocate, you can always return to your current home when the cancerous DS beasts and their minions are neutralized and removed from society if you choose. It's going to take awhile to clean out the filth from our society across the board.
If your taxes and insurance payments are included in the mortgage payment, the payment will go up when these costs go up. The monthly amount goes into an escrow account and the taxes and insurance are paid by the mortgage company in the month they are due.
If these costs go up the mortgage company will require the increase be paid to go into the escrow for the coming year. The homeowner can appeal the new valuation but I too would be voting with my feet.
Thanks for the explanation. I've never had property taxes or insurance bundled with my mortgage so this seemed odd.
Property taxes and property insurance are out-of-control in too many areas. I hope PDJT can start crushing insurance companies SOON as too many people are getting squeezed really badly by these crooks. And states need to adopt programs like Florida's FAFO to uncover the fraud in these local governments (marxist and rino infested) that are grifting at taxpayers' expense as they jack up property taxes. (Off the top of my head, FAFO has uncovered about $2B - billion - so far in wasteful and/or DEI BS spending and they only audited about a dozen cities so far). With the DS getting kneecapped financially I expect this will get worse before it gets better.
You might like Texas fren. I went to Columbus for work and I was surprised how similar it was to Houston. Friendly people into cars, beer and BBQ.
I had a contractor come for a siding estimate. He told me they are allowing people who renovate to borrow from values projected from renovations. Insane!!! No wonder why home values are so over-flated (on top of their other bullshit).
Is this an adjustable rate mortgage ? , and have your taxes gone up with an assesment from the tax appraiser ? just asking in case we can figure out options that may help.
Not adjustable. We had a 40% increase in property value from the appraiser.
Ok, this works in your favor. These appraisals are done based on property sales over time. Sales on properties that are mortgaged include processes, fees and other items "rolled" into the financing and increase the perceived value of the appraised property. So for example, an aggressive buyer pays asking price and rolls into the mortgage : fees, title insurance, appraisals, surveys, commissions, addendum improvements (new roof) etc. , cash even. Now you have a single example. Lets remember this practice has been going on for decades and improperly escalating home prices and ultimately property taxes. The government wins because they generate more revenue. HOWEVER, this is an absolute minimum cause for your own contention of the assessed value. It also enables you to bring suit. Not just a suit a RICO suit. Because every town in every state does it, does not make it right, nor legal. Hope this helps !