Escrow Shortage & Surplus
- We’ll automatically spread the shortage amount over the next 12 months and add that to your monthly payment.
Note: This is one of the most common reasons that your payment may increase.
- You can prevent this additional monthly payment increase by paying the shortage as a lump sum before the new payment effective date, but this lump sum payment is not required and is completely voluntary.
Note: Your Escrow Review Statement will pinpoint the exact month(s) where the account falls below the minimum required balance.
- If you have a surplus of more than $50 and your account is current, we’ll send you a check within 30 days of the escrow analysis.
- If the surplus is less than $50 and your account is current, we’ll spread the surplus over the next 12 months to reduce the monthly payment.
- If the account is delinquent, the surplus will remain in the escrow account for future disbursements.
Note: Current accounts in Nevada (NV) will be sent a surplus check, even if it is less than $50.
Calculating Shortage & Surplus
Then, we compare your escrow account’s lowest projected balance in the year ahead to your minimum required balance.
- If the lowest projected balance is less than your minimum required balance, you have a shortage.
- If the lowest projected balance is more than your minimum required balance, you have a surplus.
If your analysis projects that your lowest escrow balance in the year ahead will be $350, you have a shortage of $250. ($350 – $600 = -$250)
If your analysis projects that your lowest balance will be $800, you have a surplus of $200. ($800 – $600 = $200)