Posted on: 07th Sep, 2010 10:49 am
I have read a couple of posts about escrow shortages, and am looking to find out if a lender has any legal responsibility to notify a borrower about a potential shortage based on the lender's previous year calculations. We were hit with a letter basically stating, "While you were paying $1522 per month, as of next month, you will be paying $1847 per month." Had the lender notified us of this possibility, we would have set aside more money. Now we are scrambling to pay our mortgage at the end of the month.
Your escrow payments will depend upon your insurance premium and property taxes. If your insurance premium and property taxes increase, then there can be a shortage in the escrow account. It would be difficult for the lender to let you know beforehand whether or not your escrow payments would increase.