I just paid off a mortgage, and in the itemized account activity, I see an item that says "shortfall expense" for $160, and I have no idea what it means. Having called my bank's customer service line to get an explanation of other things in the past, I suspect I'll have more luck asking the folks here ;-)When I got the payoff quote, it showed the principal balance, the interest due (from the beginning of the month to the payoff date) and a small county filing fee. I payed that total amount, and it adds up correctly if I add the interest and principal payments shown in the account activity (minus the filing fee, of course). But the $160 "shortfall expense" is a mystery to me. I didn't pay it (the amount I paid doesn't include that $160), and I'm hoping I won't be billed for it... The account does show a balance of $0, not -$160, so I'm not too worried (and compared to the amount I just paid, $160 is a drop in the bucket anyway), but I'm curious.Any idea what that's about, and if it's something I need to follow up on?Thanks.
Did this mortgage have an escrow account for taxes, insurance, etc?joe
No (it was a 2nd mortgage -- the 1st has the escrow acct.).
The only other thing I can think of is a clause in the original loan requiring payments for a certain period of time, or a payment for additional interest would be due. Sort of like a declining pre-payment penalty.joe
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