Real Estate and Home Mortgages - Escrow Increase
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Warstud
04-20-09, 06:30 PM
Just recieved a notice in the mail today by my mortgage company saying I have a escrow shortage of $853.00 and that my new payment will be $800 a month starting in june if I pay it by then. It is currently $750. That's a $1200 yearly tax increase. Any advice is appreciated!
Gunguy45
04-20-09, 06:37 PM
Common...if you were short on the escrow due to a tax increase of some sort, missed payment, etc...then thay will increase it based on past payment from escrow, to give a cushion at the end of the year...
They are limited to the amount of excess escrow each year...don't know the exact number..10% over the payout maybe?
Very common when you purchase right before taxes/insurance/etc are due, and haven't built up enough to pay them.
Call the company, or look closely at the statement you recieved and ask them to clarify.
They are limited to the amount of excess escrow each year...don't know the exact number..10% over the payout maybe?
Very common when you purchase right before taxes/insurance/etc are due, and haven't built up enough to pay them.
Call the company, or look closely at the statement you recieved and ask them to clarify.