FinancingIntermediate
What Is Escrow Shortage?
An escrow shortage occurs when a mortgage's escrow account doesn't have enough funds to cover the actual property tax and insurance bills — usually because those costs rose — requiring a lump-sum payment or a temporarily higher monthly payment to catch up.
Most useful for: Repeat Buyer · Homeowner
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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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