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did you get a notice that your payments going way up and your escrow crowns all screwed up how does that happen ill tell you so a lot of times you know for one thing taxes especially in colorado and in many states are paid in arrears and what that means is when a lender closes on your loan and they set up your new escrow account the taxes that theyre using for the for the estimate the amount of money to collect for taxes on a monthly basis is based on last years tax bill so if your home gets reassessed and of course all the values are going up like crazy right now so lots of reassessments happening and your value is increased by the tax assessor and they increase your tax bill then when the lender gets that bill and they have to pay it then everything theyve been collecting all year long in anticipation to pay the bill which was all collected based on last years bill is now not going to be enough so the lender gets the new bill all of a sudden its higher than what they had saved
