Here is where I show my ignorance.
I have heard about this "homestead tax exemption" but never really knew what it was. People would talk about getting it when I lived (rented) in Florida and I never really understood it. Here in Savannah, People have mentioned they dont know what current property taxes are now because of the homestead exemption.
I just kind of assumed it was something that was offered a long time ago and did not effect me.
Then I got a bill in the mail from my mortgage company. They have been under charging me for my taxes. They plan to increase my payment by $31.00 a month!
That directly eats into my $100 a month additional payment to the principal!
I got angry and motivated. I pulled out a "tax assement" that had been sent to my house a few months ago that listed alot of values that did not make sense to me because they were valueing my house at about 1/2 of what I paid (so I was hiding the paper in shame), and told BB to march his way over to the courthouse, mortgage company or somewhere and FIX THIS while I was at work the next day.
BB did. I am still not sure what he did, but he locked in our taxes using this homestead exemption so they can never be raised. ?? I think. He was told it was locked it in at $50,000 below the stated value of the house. ?? So we essentially locked in paying taxes on a $50,000 property? That does not really make sense to me.But BB is saying its true. But BB has been plenty wrong before.
So I am not getting my hopes up- but am faxing over the documents to the loan company today and I hope they return my payment back to it's original number. I'll keep you updated.
Homestead Exemption
October 1st, 2009 at 03:20 pm
October 1st, 2009 at 03:40 pm 1254411616
Can you look online for more information?
October 1st, 2009 at 03:41 pm 1254411708
Just as a warning - California homestead is automatic. For the most part - if you only have one residence. I get all sorts of solicitations to pay for "homestead" when we bought our home. They make it look like an official bill, like you owe it. & it's not something that makes sense for like 90% of homeowners here.
Going to the courthouse and doing it yourself sounds good!
Good Luck!
October 1st, 2009 at 04:51 pm 1254415870
October 1st, 2009 at 04:52 pm 1254415937
October 1st, 2009 at 05:15 pm 1254417322
Also, if you have your taxes rolled into your mortgage payment, your payment WILL go up every year, regardless of your homestead exemption.
To the best of my knowledge whomever holds your mortgage (and pays your taxes) requires a cushion in what they call an escrow account.
That is why when I refied, I INSISTED that the taxes not be included in my mortgage. The city I live in could care less if I do/don't have a cushion .... they want their money. Period.
October 1st, 2009 at 07:21 pm 1254424867
October 1st, 2009 at 08:06 pm 1254427605
October 1st, 2009 at 10:38 pm 1254436731
Here it's called a "homeowner property tax exemption," I think. It is also rather automatic in the state of California. We owned 2 homes in California for a few months, and got a nasty note that we couldn't claim 2 exemptions. I hadn't realized we had! The exemption here is $70 per year. (7000 exemption x 1% tax rate). Considering the value of most real estate here, it doesn't amount to a hill of beans.