The information in this blog post is not official legal advice. Be sure to consult with a real estate attorney or your real estate agent for legal advice on this matter.
If you have bought a house in Columbia, SC or are planning on buying a house in Columbia there is an extremely important application that needs to be filled out in order to avoid a huge and unexpected increase in your mortgage payment down the road. It is called an application for legal residence special assessment.
If you do not complete this application your home will be taxed with a ratio of 6% instead of 4% which will result in your mortgage payment doubling when your mortgage company receives the tax bill for the property in December. We have had a number of people reach out to us with this problem and need help getting the problem solved.
In this article we will break down what the legal residence special assessment in Richland County South Carolina is, how you can complete the application for legal residence, and how to get your mortgage payment adjusted back to normal if your property tax ratio goes up as a result of not completing the application.
Why Did My Mortgage Payment Double?
When you have a fixed rate mortgage your monthly payment should not suddenly increase. It certainly shouldn’t double. If your mortgage payment in Richland County South Carolina suddenly doubles, it is likely that your lender received an unexpectedly high tax bill from the county for the previous year.
This unexpected increase will cause your lender to re-analyze your escrow payment to account for the higher than expected county property tax bill. In addition to increasing your escrow payment for the upcoming year, they will add a shortage payment to repay the money that they essentially lent you to pay the unexpectedly high tax bill paid the previous December.
The combination of the adjusted escrow for the current year and the shortage payment making up for the negative escrow balance from the previous year will cause your mortgage to increase substantially. For many people, this new payment is unaffordable and a huge stress on their finances.
If your mortgage unexpectedly doubles the first thing you need to do is contact the county and find out if you have been approved for the Richland County legal residence special assessment.
What is Legal Residence Special Assessment in Richland County South Carolina?
Homeowners in Richland County South Carolina are required to prove that their home is their legal primary residence. To do this you must complete an application that includes documentation that proves that the property is in fact your legal residence. Failure to complete this application and qualify for the special assessment may result in your mortgage payment increasing unexpectedly.
It is imperative that you complete this application and secure the legal residence special assessment in Richland County. This will reduce your property tax ratio from 6% to 4% and save you thousands of dollars on your mortgage every month. If you do not get the legal residence special assessment, you will pay your agreed upon mortgage payment until your lender receives a tax bill from Richland County that is much greater than the tax bill that was anticipated.
Visit the Richland County website for more information about legal residence and how you can qualify for the special assessment and save money on your county property tax in Columbia, SC.
Here is how you can easily apply for legal residence special assessment in Richland County.
How To Apply For Legal Residence Special Assessment in Richland County
The process of applying for legal residence special assessment in Richland County South Carolina is fairly simple and can be done online. Whether you want to be proactive and complete the application for legal residence special assessment in Richland County to avoid your mortgage doubling randomly or your mortgage has already increased and you need to get it lowered, here is how you can apply for legal residence special assessment in Richland County, SC.
- Visit the Richland County Tax Accessors Office Website.
- Enter your property address and click start form.
- Complete the form and fill in all required fields.
- Wait for the county to approve your application for legal residence.
There are a few different documents that you will need to prove legal residence in Columbia, SC and get your mortgage payment to go back to normal. Here are the documents that you will need to get your legal residence application in Richland County approved.
What Do You Need to Qualify For Legal Residence Special Assessment in Richland County
You are going to need a few different documents in order to successfully apply for legal residence in Columbia, SC. Here are the documents that you absolutely need.
- SC drivers license with property address
- SC motor vehicle registration with property address
- Voter registration at property address (if registered to vote)
- Social security card
- Tax returns reflecting property address
Visit the Richland County tax assessors office website for more information about applying for legal residence.
How Long Does it Take for The Application For Legal Residence Special Assessment Take To Get Approved?
If you are in a situation where your mortgage payment has significantly increased due to not being approved for the legal residence special assessment, you are likely scrambling to get your payment back to normal. A big question we commonly get is “how long does it take for the application for legal residence special assessment to get approved by Richland County?”
When you are on the phone with the Richland County Tax Assessors Office they say that processing times vary, however it is currently taking anywhere from 6-8 weeks for your application to be approved. This obviously will mean that you will have to pay another outrageously high mortgage payment before you can even start to get the problem resolved.
Once the application is approved you will receive a tax receipt from the county in the mail. This tax receipt shows the ratio being adjusted from 6% to 4% as well as a the value of a refund that will be sent to your mortgage company. This will reimburse your mortgage company for the unexpected increase in taxes paid for the previous year.
Once you have this document you can send it to your mortgage company and they can make an adjustment to your mortgage payment so you won’t need to make another abnormally high mortgage payment.
How do I get My Mortgage Payment Back To Normal Once I Get Approved For Legal Residence Special Assessment?
Once you are approved for legal residence special assessment in Columbia, SC, your first order of business should be contacting your lender to have your payments adjusted back to normal. Or at least a little bit closer to normal.
This is not official legal advice but general information about the legal residence special assessment in Richland County South Carolina. Please consult with your real estate lawyer or real estate agent for official legal advice.
