What happens if there is a shortage of escrow funds?
If your escrow account balance is less than the required balance at the time of your analysis, your escrow account will have a shortage and you will receive a Deficit Notice. The amount owed will automatically be spread over a 12-month period and added to your monthly payment. You do, however, have the option of paying your escrow shortage in part or in full. If you choose this option, your monthly mortgage payment will be adjusted accordingly.
