Escrow Shortage

Lenders often set up your escrow using the seller’s old (capped) tax bill. When the county resets the value after a sale, your escrow falls short and the lender raises your monthly payment to cover both the gap and the higher ongoing tax.

Estimating the post-sale tax bill before closing — and funding escrow accordingly — avoids the surprise. Both an appeal and a homestead exemption can reduce the underlying bill.