[SoftballMominVA]

Actually, the bank CAN ask her for more money. When the property is assessed for significantly more than she paid for it, the taxes will go up. Her escrow account will fall below the RESPA levels and her bank will ask her to make up the difference.

My county assesses every 4 years. We have been told to expect the assessments to increase AT LEAST 40%--and 60% will not be unheard of. We have friends who bought a townhouse for 200k with $0 down. They are absolutely strapped for cash. Their taxes will cause their payments to increase about $250 or more a month. It may break them. (Remember, when you fall below RESPA levels, you have 1 year to make up the deficit PLUS pay the needed amount to pay next years taxes.)

My husband and I knew this was coming and started saving for it so that we can pay the amount outright.

[Toddsterpatriot]

Actually, the bank CAN ask her for more money. When the property is assessed for significantly more than she paid for it, the taxes will go up. Her escrow account will fall below the RESPA levels and her bank will ask her to make up the difference.

Sure, your taxes can increase. I'm talking about the bank asking you to pay down a part of your principal. Because the value went down 10%-20%.

[Thud]

Property taxes in California are fixed at the purchase price with a minor increase allowed for inflation. My home has quadrupled in value since I bought it twenty years ago, but my property taxes have only gone up 60%.

[Rutles4Ever]

That's what almost happened to us. We bought a house that was nicely updated over the past few years. Our first two tax bills were easy. Then came the reassessment. The improvements plus the increase in prop. value increased our tax payments 400/mo. We are getting by, but either one of us gets laid off, we're screwed out of our 1500 sq. foot bungalow.