Escrow Shortage Options

When an escrow account is analyzed and a shortage is determined; the shortage is automatically prorated for the next twelve (12) monthly mortgage payments, beginning with the effective date of the analysis. 

If the mortgagor chooses to pay the shortage in full, the shortage proration amount will be removed from the monthly mortgage payment. 

Note: If the borrower elects to pay the escrow shortage, this does not mean the mortgage payment will return to the amount prior to the analysis. 

  • We will collect the higher tax and insurance amount divided by 12
  • Only the shortage is removed from the new payment amount