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
- How to Choose a First Time Credit Card
- How to Calculate Closing Costs When Paying Cash for a Home
- The Long-Term Cost of Frontier Communications' Latest Acquisition
- Mortgage Points: What They Are and Why You Might Pay Them
- How Does a Reverse Mortgage Work?
- Tobacco Industry Reshaped as Reynolds American, Inc. and Lorillard Inc. Win Deal Approval