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Escrow Deficiency Repayment Rules Worksheet
Use this when the escrow balance went below zero and the statement labels the amount a deficiency. Compare the amount with one monthly escrow payment and document the repayment treatment offered.
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Actual first-page previewEscrow Deficiency Repayment Rules Worksheet
Before you fill it out
What this resource helps you document
Use this when the escrow balance went below zero and the statement labels the amount a deficiency. Compare the amount with one monthly escrow payment and document the repayment treatment offered.
01Negative balance
02One-month threshold
03Repayment treatment
04Current-status check
05Ledger evidence
Federal baseline to check
Use the form with the rule, not instead of the rule.
These templates organize facts and records. They do not create a borrower right that the underlying regulation, loan terms, investor rules, or state law does not provide.
- A deficiency is a negative escrow account balance confirmed by an escrow analysis.
- If the deficiency is less than one monthly escrow payment and the borrower is current, the servicer may leave it, require repayment within 30 days, or require two or more equal monthly payments.
- If the deficiency is at least one monthly escrow payment and the borrower is current, the servicer may leave it or require repayment in two or more equal monthly payments; if the borrower is not current, the mortgage documents can govern recovery.
Use this resource carefully
- Use the negative balance shown by the ledger and the deficiency amount shown by the analysis; they can differ if later deposits or adjustments occurred before analysis.
- Record whether the borrower was current under the rule's 30-day test at analysis because that changes the federal repayment framework.
- Do not apply the 12-month shortage rule to a deficiency; the rule's minimum installment structure is different.