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What happens if there is a “Shortage” of impound/escrow funds?

April 26, 2017escrow funds happens Impound shortage

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What happens if there is a “Shortage” of impound/escrow funds?

1 Answer

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If your impound/escrow account balance is less than the minimum balance required at the time of your analysis, your escrow account has a shortage of funds. YOUR OPTIONS ARE: 1) Repay the total shortage immediately. This reduces your monthly payment by 1/12th of the amount repaid. If you choose to repay the shortage in full, please mail a check with the special coupon provided in your Annual Escrow Account Disclosure Statement to: Provident Funding P.O. Box 5914 Santa Rosa, CA 95402-5914 Attention: Customer Service Or 2) Repay the shortage over the next 12 months. This option is interest-free but increases your monthly payment. You do not need to contact us to choose this option; the 12 month repayment option is selected for you by default and is included in the new monthly payment shown on your new payment coupons.