What happens if a shortage in escrow funds occur?
If your escrow account balance is less than the required amount needed at the time of your analysis, your escrow account will have a shortage. Your escrow shortage is automatically spread over a 12 month period and included in your monthly payment for the specified period of time indicated on your statement. You do, however, have the option to pay the escrow shortage in part or in full. A shortage repayment coupon is attached to the statement. If you choose this option, you monthly mortgage payment will adjust. Please remit any escrow payment that is to be applied to the shortage to the address indicated below. Also be sure to indicate the purpose of the payment to ensure payment is applied correctly. If you believe the shortage is incorrect please compare the anticipated escrow disbursement amounts for those items escrowed according to your statement with your annual tax bill and/or insurance renewal to ensure the amounts are correct. The amounts indicated in the statement impact the
