If the funds in your escrow account are projected to be below your minimum balance at the lowest point in the 12-month period, you have a shortage. This can happen if the taxes or insurance premiums for the previous 12 months were more than expected. Or, if they're estimated to go up in the next 12 months.
You can make up a shortage in 1 of 2 ways:
- Pay it over 12 months. Part of your new monthly payment will include paying the shortage over 12 months.
- Pay it in full. Send a check for the shortage amount and we’ll lower your new payment by the shortage amount divided by 12.