Escrow is an account held for a specified purpose by a third party which cannot be released except by mutual agreement of the participants.
An escrow account is collected as part of mortgage payments so the mortgage service company has funds to pay property taxes and insurance on the property mortgaged. Escrow holds the earnest money in a real estate transaction until it is decided whether the money goes to buyer or to seller.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- Another Compelling Reason Why Housing Could Soar in 2015
- Zillow Inc. Earnings: New Records and a New Asset
- 4 Priceless Contract Negotiation Tips to Keep You in Control of the Deal
- Are You Ready for the Hidden Costs of Homeownership?
- How to Spot the Hidden Costs of a Mortgage
- 3 Reasons Sellers Shouldn't Fear Real Estate Disclosures