How do property tax appraisals on a new home work?

Sandianne: How do property tax appraisals on a new home work?
We bought a new home last August 2005. The taxes for 2005 were based on a property value of 17,000$ . Our home is now worth about 150,000$ for 2006. We signed a paper during the purchase, asking the escrow account to go ahead on figure the new tax rate on our home into the mortgage payments from the beginning. I am not sure if they are doing it from the paperwork I have seen. So I am afraid we will be responsible for a huge tax payment come January that we are not prepared for. And, our monthly payments will go up to accommodate the new tax rate for the next year, etc. We cannot afford a 300-400$ increase a month. How do I find out for sure if the escrow account is being funded at the proper levels so there are no surprises come January. This is worrying me greatly!
We built a house on a lot worth 17,000.
Now the property is worth 150,000-lot and new house together.

Answers and Views:

Answer by helen
Your house appreciated from $ 17,00 to $ 150,000? Take the money and run! Thats 90% gain in one year.

Answer by Silly M
On your mortgage bill, there is supposed to be a section called “escrow fund”- that’s how much the company has put away for your original bill. I got screwed the first year, but don’t worry, it will only be the first year its a shock- after that, you’ll find a way to absorb the cost, and congratulations- you’re a homeowner!

Answer by elenanita
They are not taking enough. You will get a SUPPLEMENTAL TAX BILL from your county’s tax assessors office. This bill will not be paid by the money in your escrow fund and your lender will tell you that they are not responsible. Start saving up now for the payment. I am surprised you have not gotton one yet. I bought my house at the same time and I had to pay them at the beginning of this year.

Answer by Crystal S
Call your local city or county goverment and request your tax bill. That will tell you how much they should be collecting for the year. Take that number and divide by 12 to tell you how much you should be paying monthly.

Compare that to what your statement says you are paying and you will have your answer.

Just an FYI that from a financial perspective it makes no sense to escrow your taxes. Problems arise constantly with escrow accounts.

Thanks,