Escrow Account Shortage ?

[Anonymous]

On 9/1/09, my mortgage company has to pay the second half of my property taxes for 2009 in the amount of around $1000.  They will also have to pay the FHA PMI of around $80.  If my escrow account only has $970 in it and I'm not making my payment until 9/10, how will the mortgage company handle the shortage? 

[BungalowMo]

Mine covers it, knowing that my monthly payments will bring my escrow back where it should be. 

Have you had your place under 1 year?  I'm guessing so.  Once you continue making the monthly payments, what is added to your escrow between now & next year at this time will cover your pmi's every month, your HO Insurance & your taxes, if applicable.

[DallasLoanGuy]

expect them to ask you for a check to cover the shortfall.... or they will raise your payment temporarily to cover it.

they also have a right to have a buffer in there... a 2 month cushion. they will likely try to build that up too

[Anonymous]

Thanks!  I will pay on 8/28 so that they have another $318 added to the $970 which should take care of the problem.  I think it's just because both my homeowners insurance and 1/2 property taxes were due so close together.  Should even out by next year! 

[marty56]

Slightly OT but some lenders wont adjust the mortgage payment even if you know your taxs will go up since the only do an escrow analysis once a year.  National City was that way but I refied to RBFCU and they will adjust the escrow payment right after the tax increase.

Also for new home buyers, you may only be taxed on the land value the first year of payments and when the tax bill goes up the next year, you might be very sort in escrow for the next year.  One year ymy payments went up $400 becuase of this but I was warned about this so I planed for it budget wise.