My escrow analysis showed a $1,400 shortage and I had no idea how that math worked

After 5 years of steady payments on my duplex in Phoenix, the annual statement said I owed the shortage upfront or my payment jumps $118 a month, so I dug into the county tax records and found the assessed value went up 22% last July, has anyone else had their cushion drop to nearly zero without notice?

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evaallen26d ago

The part where you said "the assessed value went up 22% last July" is the piece that needs a little tweaking. The assessed value isn't the same as what you actually owe in taxes, that's just the starting point for the tax bill. The county might have raised the assessed value, but your taxes only go up if the tax rate or any voter-approved bonds also change. So a 22% jump in assessed value could still mean your tax bill went up way more or way less than that, it all depends on the local formulas. Your escrow shortage is based on what your lender actually paid out, not just the assessed value, so that's the number to focus on. You might want to check the actual tax bill from the county, it should show the real dollar amount they charged, and that's what your escrow was short on.