Why is my mortgage payment changing? Property Tax Escrow in Michigan & Ohio
In the real estate markets of Michigan and Ohio, a property tax escrow account (sometimes called an impound account) is a secondary account managed by your mortgage servicer. Under the federal Real Estate Settlement Procedures Act (RESPA), specifically Regulation X (12 CFR § 1024.17), there are strict limits on how much a lender can require you to maintain in this account. In this video, a Michigan and Ohio attorney explains how escrow analysis works in 2026. We look at the "Two-Month Cushion": lenders are generally allowed to keep a reserve of no more than one-sixth (1/6) of your total annual property tax and insurance payments. You’ll learn why Michigan homeowners often see "uncapping" events after a purchase that lead to massive escrow shortages, and how Ohio’s semi-annual tax collection cycle affects your monthly statement. We also discuss Escrow Shortages and Surpluses. If your taxes go up, your lender will "advance" the money to the county, but they will then raise your monthly payment to pay themselves back. Whether you are dealing with a surprise bill from the County Treasurer or trying to figure out why you received a refund check in the mail, understanding the "Annual Escrow Analysis" is the only way to manage your long-term housing costs. ✅ In this video, a Michigan and Ohio attorney explains the RESPA 1/6th cushion rule, tax uncapping, and how to dispute an escrow error. Disclaimer: This video is for educational purposes only and does not create an attorney-client relationship. Among legal topics covered in this video: The 1/6th Cushion Rule: Understanding the federal limit on how much "extra" cash a lender can hold in your account. Tax Uncapping (Michigan): How the transfer of ownership triggers a tax reset that often causes a first-year escrow shortage. Semi-Annual Deadlines (Ohio): Navigating the February and July tax cycles in Ohio and how they hit your escrow account. Annual Escrow Analysis: Why your lender is legally required to send you a statement once a year showing every penny in and out. Shortage vs. Deficiency: The difference between not having enough for next year vs. the bank having to cover a bill this year. Waiver of Escrow: The legal requirement to "self-pay" your taxes and insurance if you have at least 20% equity in the home. Michigan & Ohio attorney David Soble and the Soble Law team are dedicated to the success of their clients in the areas of real estate, contracts, and financial disputes. As part of our commitment, we actively write, publish, and create books, articles, podcasts, slide presentations, and newsletters—all designed to simplify complicated legal concepts related to real estate and finance. We strive to make these resources user-friendly and practical so that anyone with a legal concern can understand how to reduce their legal liability and financial exposure. Here are some links to check out: For your Free Real Estate E-Books: https://www.provenresource.com/library For articles: https://www.provenresource.com/blog For New Radio Media Podcasts, visit https://www.provenresource.com/podcast. See our social media sites: Facebook: / provenresource Twitter: www.twitter.com/provenresource LinkedIn: / provenresource To subscribe to our monthly newsletter, "Anecdotes." Visit: https://provenresource.com/project/ne... Call 888-789-1715 before you sign your contract!
