Help! My mortgage company just hit me with some shocking news. They claim I have a $7,000 escrow shortage and my monthly payment is going up by $700. I’m freaking out because I’ve always paid on time and haven’t had any major issues with my house.
I’m retired and on Social Security. This increase means my entire SS check will go to my mortgage now. I don’t understand how this happened or why I’m responsible for it. Can someone explain what an escrow shortage is and why it would happen so suddenly?
Is there anything I can do to fight this or get it reduced? I’m really worried I might lose my home if I can’t figure this out. Has anyone else dealt with a similar situation? Any advice would be greatly appreciated!
hey, that suprise is rough. i had a similar thing last year once. check your lender for a full itemized breakdown; they might let you work a plan. hope you figure it out soon.
I’ve encountered this scenario before, and it’s undoubtedly stressful. An escrow shortage occurs when the account doesn’t have sufficient funds to cover property taxes and insurance. This can happen due to increased property taxes or insurance premiums. Request a detailed escrow analysis from your mortgage company to understand the exact cause. Consider contacting a housing counselor approved by the Department of Housing and Urban Development for guidance. They may help you explore options like loan modification or negotiating a repayment plan with your lender. Don’t delay in addressing this issue, as proactive communication with your mortgage company is crucial in these situations.