Escrow

Escrow is a neutral third-party arrangement that holds funds or documents until the conditions of a transaction are met.

What Escrow means

It appears twice in homebuying: an escrow holds the deposit and funds during closing, and an ongoing escrow account collects monthly amounts for property taxes and insurance.

Florida example

At a Florida closing, the title company acts as escrow agent, releasing funds only when all conditions clear. After closing, your servicer's escrow account spreads the annual tax and insurance bills across twelve payments.

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