Housing & Mortgage Terms

Terms covering mortgage servicing, escrow, and insurance mechanics that can turn into a missed-payment or foreclosure risk.

• Force-Placed Insurance

  A homeowners insurance policy a mortgage servicer buys and bills to you automatically when your own coverage lapses — far more expensive than a normal policy and protects only the lender's interest.

• Escrow Shortage

  The gap between what your mortgage servicer collected for property taxes and insurance and what it actually had to pay out — closed by raising your monthly payment.