My Escrow Account is Short: How to Fix it! |

Описание: My Escrow Account is Short! How to you fix that? BONUS Tip not included in the video is listed below that could save your house!

OH NO! Your Escrow Account has fallen short, what to do next!?
An Escrow Account is an account managed by you and a third-party, which is typically your local lender, and is paid through with mortgage expenses and other bills that are related to you receiving your brand new home. For more information on Escrow Accounts check out these two amazing videos that will break down the fundamentals and basics of what and how an escrow account works.

What is An Escrow Account? -    • What is an Escrow Account? | #loanwithjen ...  
How An Escrow Account Works -    • How an Escrow Account Works | #loanwithjen...  
ESCROW ACCOUNT EXPLAINED: https://www.loanwithjen.com/escrow-ac...

CHAPTERS:
00:00 Intro
00:59 Main Reason your escrow was short - You Bought a Brand New Home (and it’s still under construction or has not fully finished building process)
02:00 how the amount you owe is calculated - example
03:38 Get current on your taxes & insurance - Pay the money up front or Method #2 to get current on taxes and insurance- Make INTEREST FREE payments over the incremental amount of months you missed!
04:00 Interest free loan

Have you received a letter from your mortgage lender that says you owe them money for an escrow shortage? Or maybe gotten a notice from your local lender saying the account balance is low. Well surprisingly, there are many reasons on why and how this might occur, but the main three are:

Main Reason - You Bought a Brand New Home (and it’s still under construction or has not fully finished building process)

So when a brand new house is in the process of being constructed, there is no property tax assessed on it, rather a “land tax” issuing tax on the land, but not the house. The government or local area does this because there is no actual habitable property on the land, and nobody is able to live in it, so until it’s recognized by the city as a property, land tax will be instituted, which is significantly cheaper than the tax for the property with a house. Or, what tends to happen a little bit more often is, in the state of Texas, the country re-evaluates land and property tax values once a year, which typically occurs in January. So if house construction finished in January, and you just moved into your house in February, the county will charge you the difference in taxes you would have paid anyways.

For example, let’s say, you were paying land tax on your property which turned out to be, $333 per month. Then the county reissued the tax as a property tax translating it to $833 per month. You would owe the difference of $500 for every month you missed paying on the property tax!

I've got the answer for you to solve your problem! There are a few ways you can solve the problem of your escrow account being short!

Method #1 - Pay the money up front

Now of course, this is only if you have the money that makes up the difference. Referring to the example above, and assuming you missed 12 months or one year of payments on the property, you would end up owing $6,000, which if it’s something you’re willing to spend at the moment, should be your go-to decision. Pay it off now.

Method #2 - Make INTEREST FREE payments over the incremental amount of months you missed!

From my experience, this tends to be the best thing for most of my clients and people that I’ve worked with the past. The incremental, interest free payments work like this: So let’s say you were paying $333 a month for the land tax, and next year, after your local area re-evaluates your property, they start charging you a property tax of $833 that doesn't surface until next year. So if you’ve accumulated the difference between the two taxes, which should amount to $6,000, instead of paying it off in full, you can pay the difference of $500 a month in addition to your current property tax. Which comes interest free! This will of course, come to an end once you’ve finished paying the entire difference between the two taxes.

BONUS TIP! METHOD #3 - Ask your lender to spread those payments over 2 or 3 years. Some lenders will say yes. They don't want you to get behind in your payments, so talk to them.

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Jennifer Hughes Hernandez, Legacy Mutual Mortgage - Equal Housing Opportunity Lender NMLS #514497

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