What is an escrow shortage?

This means your escrow account has insufficient funds to make all the necessary payments for property taxes and insurance. This can happen for a few reasons:

  • An unanticipated increase in your property taxes or insurance.
  • A tax payment is owed by the 15th of the month, so the disbursement happens a month earlier to avoid the possibility of a late fee.
  • If the taxing authority provides a discount for early payments, an earlier disbursement may occur.
  • A change in insurance companies occurs during the 12-month escrow cycle. This may cause an earlier disbursement date than previously projected.

Check out our Escrow Educational Video for more information.

For U.S. Bank:
Equal Housing Lender.

Deposit products are offered by U.S. Bank National Association. Member FDIC. Mortgage, Home Equity and credit products offered by U.S. Bank National Association. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice.
U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.