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JB Umphrey
JB Umphrey, Attorney
Category: Legal
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Experience:  Explains legal matters based on 14+ years experience.
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i purchased a new home in 2008. exactly 1 year after making

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i purchased a new home in 2008. exactly 1 year after making my mortgage payments, i noticed my payment increased by $700. They said it was due to a negative balance on the escrow account. After looking at the property tax statement i noticed that in addition to paying around $3000 in normal property taxes, I was being charged an additional $3000 for voter approved bonds. I understand that new homes must be reassessed after one year, but didnt countrywide have an obligation to provide correct property tax info when doing the loan, esp since the bond had been there since 2005? this situation has put me in danger of losing my home. this seems like i was being set up to sign for the low payment for the first year and not told about the bond because they knew i would not sign at the higer payment
Submitted: 6 years ago.
Category: Legal
Expert:  JB Umphrey replied 6 years ago.

Thank you for using JustAnswer!


I am sorry to learn of your circumstances and I assure you that you are not the only one in this boat. Countrywide did not have the legal duty to do what you describe. Rather, it's every purchaser for themself and it was your duty to go to your local assessor, see what the current applicable tax rates are an obtain an estimate as to what your taxes would be if you purchased that particular property.


Tax assessors throughout this country as so mad at the mortgage industry for circumstances which are exactly like yours. It's one of the unspoken reasons of why the foreclosure rates have been so high.


Good luck and best wishes for better days ahead. I hope that you find this information to be helpful and this answer to be ACCEPTable!

JB Umphrey and 8 other Legal Specialists are ready to help you
Customer: replied 6 years ago.

So then whats to stop every mortgage officer from lowballing the property taxes to get the payment low and get people to sign? I find it hard to believe that the lender as well as the title company have no responsibility to make sure the information is as correct as possible. The actual property tax itself is not my problem. Its the 3000 bond that popped up a year later. Several people on my street did not have ths increase becuase their loan was correct to begin with. Are you saying that there is no difference between estimate and gross miscalculation (or possibly intentionally omission)?

Customer: replied 6 years ago.
Its not the prop taxes that are killing me, its the 3000 a year bond that no one mentioned. Are you saying that legally there is no difference between an underestimation and a gross miscalculation (or possibly intentional omission)?
Expert:  JB Umphrey replied 6 years ago.

For all practical purposes, a bond is a form of a tax -- just like a millage.


Yes, your understanding of the underestimation and the miscalculation is correct. And I'm willing to bet that somewhere in your paperwork is small print encouraging you to go to your assessor for the actual numbers.

Customer: replied 6 years ago.

so no case you think? I mean, im sure all the ARMS and other scams that popularized the term "predatory lending" were written in plain English very small as well.

Expert:  JB Umphrey replied 6 years ago.
Unfortunately, that's correct.