Marketing Escrow Shortages

By
Mortgage and Lending with Southwest Funding

Everyday mortgage professionals come across clients that have experienced, or know someone who currently is experiencing an escrow shortage. Escrow shortages are very common and create financial hardships to homeowners. Often homeowners in newly developed neighborhoods experience escrow shortages, being that tax values in these neighborhoods are based on unimproved land (as opposed to the total value of the new home and the property).

When you hear the words "escrow shortage" take a few minutes to explore the address and cross reference other streets in the neighborhood. Often times when a client has experienced an escrow shortage, odds are that several homeowners on the street, or neighborhood, are experiencing the same.

New homeowners need to be very careful of escrow shortage.  They can avoid this by doing escrow on their own, sending extra money towards escrow or closely monitoring their escrow account.

DFW Loan Officer 

 

Comments (4)

Dave Cheatham
INC Financial - Bartlett, IL
This can cause major issues for people.  Great topic.
May 29, 2007 10:34 AM
Anonymous
Charles
I'm a new home owner going on my second year now and this is happening to me right now .It is causing my house payment to go up by $500 . My mortage company did not even let me know there was going to be a shortage . How can I fight this please e-mail me at charle032975@yahoo.com .
Apr 26, 2008 08:03 PM
#2
Anonymous
Charles
I'm a new home owner going on my second year now and this is happening to me right now .It is causing my house payment to go up by $500 . My mortage company did not even let me know there was going to be a shortage . How can I fight this please e-mail me at charle032975@yahoo.com .
Apr 26, 2008 08:03 PM
#3
Anonymous
shannon

I have been living in my new construction home for about 2 years and I am in the exact same position here. In October, 2008 My house note is going to go up $650 a month to cover shortages. There should be a law somewhere to protect people from being in this situation. I am a RN, make a good living and have great credit, but please tell me who can afford/budget for a 650 dollar increase a month. What a shame.

Sep 22, 2008 05:45 PM
#4