shortage spread escrow | BTCC Knowledge

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An escrow shortage occurs when the funds held in an escrow account are insufficient to cover the required payments, such as property taxes or insurance. Homeowners with fixed-rate mortgages may face an unexpected increase in their monthly payments due to escrow shortages. Options to address this issue include replenishing the escrow account, refinancing the mortgage, or challenging the property tax assessment. Understanding escrow shortages is crucial for financial planning.

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