Lake Placid, NY asked in Real Estate Law and Banking for New York

Q: Can a bank claim escrow shortage but say you can't pay the entire shortage in full to raise payment

The bank is saying we're short in escrow $400 but also trying to raise our monthly payment by $8.78 saying we can't pay the entire shortage to remain at the same payment we have. We'd rather pay the $500 we're actually short to remain at the same payment but they're saying we cannot do this.

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1 Lawyer Answer
Elaine Shay
Elaine Shay
  • Business Law Lawyer
  • New York, NY
  • Licensed in New York

A: Generally, yes because the shortage indicates the current monthly payments you are making are not sufficient to meet the escrow obligation.

Carl Nelson and Steven Warren Smollens agree with this answer

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