TeachMeFinance.com - explain escrow
escrow -- Temporary deposit with a third party of assets
by agreement between two parties to a contract. The money
is released when the conditions of the contract have been
account --a separate account into which the lender puts a portion
of each monthly mortgage payment; an escrow account provides the
funds needed for such expenses as property taxes, homeowners insurance,
mortgage insurance, etc.
Escrow -- is the holding of money
or documents by a neutral third party prior to closing. It can also be an account held by
the lender (or servicer) into which a homeowner pays money for taxes and insurance.
escrow -- a written agreement under which documents, funds or other property being transferred from one party to another are placed with a third person or entity, usually a trust company, acting as custodian. The custodian completes the transfer to the second party only upon the fulfillment of certain specified conditions.
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