How to Avoid an Escrow Oops That Could Hurt Your Credit
As fall settles in, it’s also the season when property tax bills come due in most Georgia counties.
If you have an escrow account, your mortgage servicer will soon be reviewing it to make sure there’s enough (or not too much!) to cover next year’s property taxes and homeowners insurance. That’s when you’ll receive your Annual Escrow Analysis Statement*—by mail or email, depending on your settings.
Here’s why it’s worth opening (and why you shouldn’t toss it with the junk mail).
What’s an Escrow Analysis?
After your lender pays your taxes and insurance, they check your escrow balance to ensure it’s properly funded for the coming year.
- If costs increased: You’ll likely see an escrow shortage, and your monthly payment may go up. Most lenders will let you spread the difference over the next 12 payments—or you can choose to pay the shortage upfront to keep your monthly payment closer to last year’s.
- If costs decreased: You may have a surplus, and if it’s over $50, you’ll receive a refund check (a nice little fall bonus) and your monthly payment will adjust slightly lower.
- If everything stayed the same: Congrats—you win the prize of quiet consistency!
Why You Should Always Open That Envelope (or Email)
Many homeowners have their mortgage on auto-pay—which is great for peace of mind… until your payment changes and you don’t notice.
If your servicer adjusts your payment higher but your auto-pay remains the same:
❌ They won’t accept a partial payment.
❌ After a couple of months, your account could show as past due.
❌ That can drop your credit score by up to 100 points and stay on your record for seven years.
Yikes. A small oversight can turn into a major headache—so I can’t stress this enough: please open that envelope (or email)!
What You Should Do Now
- Open and review your Escrow Analysis Statement—don’t assume it’s junk mail.
- Log in to your mortgage servicer’s portal to confirm your new payment amount.
- Update your auto-pay settings if needed.
- If you’re getting a refund, celebrate with a pumpkin spice latte (or two).
Bottom Line
Your escrow analysis might bring a small payment change—or even a surprise refund—but either way, staying proactive keeps your mortgage (and your credit score) in great shape.
If anything in your statement looks confusing—or you’d just like to double-check how it affects your payments—I’m always happy to help.
One quick review today can save a world of stress later.
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When you purchase your home with me at BankSouth Mortgage, you may be able to refinance later with no lender fees.*** This program offers flexibility as life changes, with the potential for savings when it matters most.
*Annual escrow statements may be provided at different times of the year. Please check with your mortgage servicer for details. **One-time float down available on 45-120 day rate locks. Float down must be executed at least 15 days prior to closing and must be at least .125 improvement. ** This offer may change or end at any time without notice. “No Lender Fees” refers to waived origination charges. Eligibility conditions apply. Subject to credit and property approval.
Blog post date: Friday, October 10, 2025
