Cleveland Comtesting Property Values

[David Rogers]

I contested the value of 2 of my properties this last year and won both reviews. The county adjusted the value of each house to my purchase price but neither mortgage has adjusted their escrow to reflect the change. Both mortgage companies are collecting as if the higher tax rate were still in effect. I emailed one and they said they would review escrow at the end of the year and make an adjustment. I figured the other would say the same so I did not contact them.

Has anybody had a similar experience? Does the mortgage company’s explanation sound right? Once they do adjust for next year, I should have extra money escrowed. Will they refund the overage to me or will I be carrying extra cash in escrow for...28 more years?

Thanks ya’ll

[James Wise]

Originally posted by @David Rogers:

I contested the value of 2 of my properties this last year and won both reviews. The county adjusted the value of each house to my purchase price but neither mortgage has adjusted their escrow to reflect the change. Both mortgage companies are collecting as if the higher tax rate were still in effect. I emailed one and they said they would review escrow at the end of the year and make an adjustment. I figured the other would say the same so I did not contact them.

Has anybody had a similar experience? Does the mortgage company’s explanation sound right? Once they do adjust for next year, I should have extra money escrowed. Will they refund the overage to me or will I be carrying extra cash in escrow for...28 more years?

Thanks ya’ll

 They will issue you a refund at the end of the year. Note that it also works the other way if taxes increase and the escrow doesn't cover it. They will increase your payment.

[Karl Hadley]

@David Rogers - I would contact the second company as well and ask for a review. I did the same thing 2 years ago and the mortgage company did an off cycle review because of the tax bill change & issued a refund check for the overage.