Escrow

An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing. of funds to pay taxes and insuranceFunds collected as part of the borrower’s monthly payment and held in escrow for the payment of the borrower’s or funds paid by the borrower for, state and local property taxes and insurance premiums. premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closingThe process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some jurisdictions, closing is referred to as “escrow,” a process by which a buyer and seller deliver legal documents to a third party who completes the transaction in accordance with their instructions. See... of a sale of real estate.