Escrow

If you are in the process of purchasing a home and the word escrow comes up, you might not know what it is. It is actually an account that protects everyone involved with the home purchase. No matter if you are the buyer or the seller, no funds should go anywhere until all the details are sorted out.  For both sides that are involved, it give everyone reassurance when a large transaction is being done.

Escrow is an agreement and takes the form of either a bond, deed, contract or some other document that is legal and given to a third party who is neutral and then it stays till call conditions are met. It is then the job of the escrow agent to deliver the assets when the transaction is complete.

If the transaction is a mortgage escrow, homeowners can put their  property tax and their mortgage insurance in an escrow account. In this way, it is the mortgage  holder that makes payments on bills that are due out of this escrow account. Escrow provides a fail-safe solution if you are looking to transfer real estate or other items of value.

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