I talked to the loan officer and he said he would explain that to the seller and also tell them nothing would change and we are still on track to close on time. 

Can you briefly explain what this is all about? 

I would explain to the tenants, that it is their responsibility to work out the deposit.

If you have a good case, I would send the PM a written letter explaining why you think they are responsible and asking them to compensate you for the loss.

Could you explain in more detail your situation?  

Hey Dagan, Biggest thing for me has been mindset and doing what people say: it all starts with one investor, one broker phone call, one post on BiggerPockets and you soon realize that you can explain to someone that real estate is an awesome investment, and you can explain to a broker that you are the real deal, and you can provide value on the BP forums.  

After contacting my Mortgage servicer they explained to me about the shortage in escrow which caused the increase but to be doubled i think it's absurd. i will be contacting my insurance broker and also contacting the city to dispute this amount.

The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.

He is a nice guy and can patiently explain to you all your options.

Can someone please explain how subject to works when someone still owes most of their mortgage?