If you believe you are paying too much in property tax, you likely have the legal right to appeal the assessment. Doing so may be in your financial interests, as an appeal may reduce the property taxes you owe.
If you have a mortgage, there is a good chance the mortgage holder maintains an escrow account for your property taxes. That is, you likely include tax payments in every mortgage payment you make. If your tax appeal is successful, you may wonder when your mortgage company will update your payments.
A one-year review
Your mortgage company may have millions of customers, making frequent reviews of escrow accounts virtually impossible. Still, the company should be accurate when collecting payments. Many mortgage providers review escrow accounts once a year. After these reviews, many companies send escrow statements in September or October.
Escrow overages and insufficiencies
A successful tax assessment appeal may result in an overage in your escrow account. If your mortgage company’s annual review reflects an overage worth more than two months of tax contributions, the company is likely to issue you a refund. For an insufficiency, the company will probably raise your monthly escrow contributions.
You can rely on your mortgage provider’s annual review of your property tax escrow account, so you do not have to send official notification to your mortgage company. There is nothing to stop you from notifying the holder of your mortgage, however.
There is probably no guarantee your mortgage provider will rework your tax escrow payments before the scheduled annual review. Still, if your tax appeal makes a considerable difference, notifying your mortgage company may be worthwhile.