An escrow shortage is when there is a negative balance in the escrow account and not enough money to pay your bills plus maintain the required cushion. The most common reason for an escrow shortage is an increase in property taxes, which results in an increase to the escrow payments. Other possible reasons for escrow shortages include a rise in homeowners insurance and a miscalculation of the escrow payment when the home loan was originally started.
With our help, you can find a home in a community you want to live in and lease the property for up to 5 years (in most areas). You have the option of purchasing the home at any time during your residency. You have the right to purchase the home or the option of walking away without penalty at the end of your lease. Our program gives you the opportunity to realize the dream of owning your home.
Aside from traditional income forms such as the W-2 and 1099, documents that homeowners should have on hand for tax preparation include:
Form 1098 – Provided by your mortgage lender, Form 1098 shows payments on interest, points and private mortgage insurance. This form often includes the amount of real estate taxes paid. With Form 1098, homeowners can file for a mortgage interest deduction (MID).