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Updated over 6 years ago on . Most recent reply

User Stats

281
Posts
108
Votes
Atul Mohlajee
  • Oak Park, IL
108
Votes |
281
Posts

On rentals, do you pay escrow shortage or let payment increase

Atul Mohlajee
  • Oak Park, IL
Posted

I have two commercial and residential properties.  Bank is asking to make up escrow shortage by paying about $11,600 or they will increase total monthly payment on both properties to make up for past and future escrow shortage that includes taxes and insurance.  What do most of you prefer, just let the payments increase and reduce cash flow or pay them interest free $11600 that I can otherwise use to pay off higher interest loans.  Please share your thoughts.

Thanks

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