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Grevious47 t1_iyboooe wrote

escrow account is insurance and property tax. Those went up, for a while you were paying the old rate with your payments and now the escrow company is correcting that by upping your monthly payment to not only account for the higher taxes and insurance but also to pay back all the payments where you had underpaid prior.

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Imaginary_Grocery_70 t1_iyc0dnk wrote

In my state, the purchaser is responsible for the "supplemental tax," where the property tax assessment is "trued up" on the purchase price. The escrower only pays the regular, secured property taxes out of escrow.

Occasionally buyers here are surprised by this. I had to pay 6 months of stepped up tax basis on my own after buying, but I knew it was coming and had budgeted it. Then you know how much your property tax will go up every year, thank you Prop 13. . .

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