Tagged : Escrow Account

The word escrow can mean many things depending upon which context it is applied to. In generic terms, escrow refers to a deed that a third party holds until a transaction is complete. There are four basic types of escrow - banking, Internet, law, and real estate.

In real estate escrow, a mortgage company sets up an escrow account separately from the mortgage in which the deposited funds are set aside for purposes of paying certain responsibilities such as the property taxes and property insurance payments for the term of the mortgage. An escrow agent is assigned to the purchase of a specific piece of real estate and they are expected to account for the money deposited into the escrow account and make sure that the money is used expressly for the intended…