Escrow account deposit increased by 60 dollars this year?

[Account Closed]

I just received a letter from my mortgage company for my investment property in Arizona stating that my escrow needs to be increased and I am in a shortage. There is also a new charge for hazard insurance which I was unaware of. My escrow account is now going from $47.91 to $73.68 and also adding an escrow shortage amount each month of $32.19. Am I missing something here? I do not understand how any of this was not adding in in the initial monthly payment setup when I purchased the property last year. Please let me know what you think because I am very confused. 

[Paul Santos]

The amount that goes into escrow will fluctuate on a yearly basis. Banks review your escrow expenses yearly (usually anniversary date of loan inception) and adjust the amount to cover escrow expenses. Your escrow probably pays property tax and property insurance. Property taxes can increase or decrease, and so will your escrow amount to compensate for the difference. Your property insurance can also increase or decrease thus requiring an adjustment in escrow as well. Banks will cover you by paying shortages (you don't want to miss a tax or insurance payment) and at the yearly escrow audit the bank may increase/decrease your escrow amount and tack on an additional amount to payoff the shortage from previous year. Think of the bank paying your shortage as a free loan. What you are experiencing is nothing unusual and comes with having a mortgage.