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.