What to Do if You Paid Property Taxes on the Wrong House
In a recent Help Me Howard segment on 7News, a South Florida man named Hector Mora shared his frustrating experience of paying property taxes on the wrong house. Hector, like many homeowners, pays his mortgage, which includes money to cover property taxes and insurance. However, he discovered that his lending company had mistakenly paid the taxes for another homeowner.
When Hector noticed an increase in his mortgage payment, he took a closer look at his escrow account, which covers expenses like homeowner’s insurance, hurricane insurance, and county taxes. To his dismay, he found out that the mortgage company had not been paying his property taxes for the past two years, despite him putting approximately $12,000 into his escrow account for that purpose.
The company servicing Hector’s mortgage, LoanCare, admitted their mistake and retrieved the funds from the other property owner. However, they demanded that Hector repay an additional $12,000 to cover interest, penalties, and increased insurance costs within two years. This unexpected financial burden was a challenge for Hector, a single father.
Despite Hector’s suggestion to move the shortfall to the back end of the loan, LoanCare insisted on immediate repayment. Seeking legal advice, Howard Finkelstein, 7News legal expert, highlighted that the company was responsible for any interest and penalties incurred due to their errors. While homeowners are accountable for their taxes and insurance, Hector should have been given more time to repay the amount owed.
After 7News intervened and contacted LoanCare, Hector’s account was reevaluated. The company acknowledged a $2,000 discrepancy in the escrow account and adjusted the repayment terms. Instead of having to repay $12,226 over two years, Hector was now required to pay $8,224 over five years, significantly reducing his monthly burden.
Hector expressed his relief and gratitude for the resolution of the financial issue, crediting Help Me Howard for their assistance. This case serves as a reminder for homeowners to regularly check if their mortgage company is paying their property taxes correctly to avoid potential consequences such as losing their homes.
If you find yourself in a similar situation where property tax payments have been made on the wrong house, it is essential to take prompt action. Contacting your mortgage company, seeking legal advice, and reaching out to consumer advocacy programs like Help Me Howard can help resolve such issues effectively. Remember to stay informed about your financial obligations and advocate for fair and reasonable solutions in case of errors or discrepancies.