Happened to me when we built our first house. The escrowed amount was based on the empty lot & they didn't catch it for 2 years. Yup, it more than quadrupled our escrow amount for the next year to catch up.
Second house, we took the estimated taxes, divided by 12, and direct-deposited them into a savings account for taxes. The estimate was actually a little high so we end up with some bonus cash at the end of the year now!
InappropriateGeek t1_iybdbpk wrote
Reply to LPT: If you’re buying a home and are given the choice whether or not to escrow property taxes, do not escrow them. by [deleted]
Happened to me when we built our first house. The escrowed amount was based on the empty lot & they didn't catch it for 2 years. Yup, it more than quadrupled our escrow amount for the next year to catch up.
Second house, we took the estimated taxes, divided by 12, and direct-deposited them into a savings account for taxes. The estimate was actually a little high so we end up with some bonus cash at the end of the year now!