Florida homeowners accuse D.R. Horton and DHI Mortgage of underestimating property taxes, causing monthly payments to rise by hundreds or thousands. A proposed class action seeks relief as the companies deny wrongdoing and the case awaits certification.
Dozens of Northeast Florida homeowners report that their mortgage payments rose sharply after purchasing newly built houses from D.R. Horton, according to News4JAX. Many buyers say the increases ranged from $500 to more than $1,000 per month, creating unexpected financial pressure and prompting questions about the accuracy of property tax estimates provided at closing.
The issue has formed the basis of a class action lawsuit filed against D.R. Horton and its lending subsidiary, DHI Mortgage. Attorneys with the National Consumer Law Center describe the case as alleging a Monthly Payment Suppression Scheme. The complaint states that the companies significantly underestimated property taxes in initial mortgage projections, making the monthly payments appear lower than they would be once full tax obligations were assessed.
Homeowners interviewed by the station recounted similar experiences. One buyer in Yulee said the affordability of the initial estimate influenced his decision to move his family from Buffalo. He stated that the following year’s estimated tax bill increased his escrow obligation by about 20 percent, raising his monthly payment by roughly $600. Another homeowner in North Jacksonville reported a $500 increase, while neighbors experienced escalations of $1,000 to $2,000. Some residents said their mortgage bills tripled compared to their starting payments.
According to the lawsuit, the majority of annual property taxes were intentionally left out of loan disclosures. When loans were later transferred to new servicers and escrow accounts recalculated, buyers encountered full tax assessments along with back taxes that had not been collected. Attorneys say the resulting payment shocks have contributed to foreclosures and forced sales among affected households.
Homeowners interviewed described a range of financial adjustments, including taking on additional work to cover higher payments. Several residents said they hoped the legal action would increase transparency in the lending and homebuilding process.
D.R. Horton has issued a statement contesting the allegations. The company and its mortgage arm deny any wrongdoing and say they plan to defend themselves vigorously in court.
The lawsuit has been filed in federal court but has not yet been certified as a class action. If certification is approved, eligible homeowners would receive notices and would be automatically included unless they opt out. There is currently no timeline for a ruling on certification, and the litigation remains in its preliminary phase.