The parent's home may be carrying a mortgage, and there may be property tax discounts available. Have you considered looking into getting those discounts yet? Hate to be a nag, but a penny saved is a penny not spent. But you may have to spend some time seeking out those programs.
If you are not familiar with your parents home mortgage and their property tax bill because it’s been wrapped into the payment book for decades, now is the time to look at the payment book. See what the annual property taxes are for their house. Know the value and know the tax amount in dollars.
If there are applicable discounts that you and the parent may file for at the state, federal or county level. Speak with the parents income tax accountant, or financial advisor and inquire if this benefit may be applicable or for additional guidance.
After filing, and acceptance for any property tax discount benefits, you may need to speak with the escrow company and advise them to expect a letter stating a drop in the property tax. Note that the parent/homeowner will receive a letter also explaining the drop in property taxes due, stating when the discount will begin. You may have to re-file for this benefit annually in specific season of the year.
I have been told that the escrow company will have to recalculate the monthly percentage of the property tax collected. So there may be a dollar value change in the house payment monthly. Or the escrow company may offer to credit back the overage back to the owner or apply it to the principle.
It may pay off if the parent is fully disabled, or veteran or both just to save money with a little effort towards discovery of any options not taken advantage of.
Consider contacting to know what is available in your state, or county:
County Assessor
Department of Aging
Department of Veterans Affairs
If you are not familiar with your parents home mortgage and their property tax bill because it’s been wrapped into the payment book for decades, now is the time to look at the payment book. See what the annual property taxes are for their house. Know the value and know the tax amount in dollars.
If there are applicable discounts that you and the parent may file for at the state, federal or county level. Speak with the parents income tax accountant, or financial advisor and inquire if this benefit may be applicable or for additional guidance.
After filing, and acceptance for any property tax discount benefits, you may need to speak with the escrow company and advise them to expect a letter stating a drop in the property tax. Note that the parent/homeowner will receive a letter also explaining the drop in property taxes due, stating when the discount will begin. You may have to re-file for this benefit annually in specific season of the year.
I have been told that the escrow company will have to recalculate the monthly percentage of the property tax collected. So there may be a dollar value change in the house payment monthly. Or the escrow company may offer to credit back the overage back to the owner or apply it to the principle.
It may pay off if the parent is fully disabled, or veteran or both just to save money with a little effort towards discovery of any options not taken advantage of.
Consider contacting to know what is available in your state, or county:
County Assessor
Department of Aging
Department of Veterans Affairs
