How Is Escrow Shortage Determined?
Escrow shortage is determined by taking your lowest balance over 12 months – called an escrow cushion – and adding your required minimum balance. Adding these 2 figures together will give your escrow shortage. For Example: If you live in Oregon, you must have a 2 month escrow cushion. If you have a minimum escrow payment of $100.00 per month, you must have an escrow cushion of $200.00. Your shortage would be $100.00 plus the escrow cushion of $200.00. This would be $300.00.
