In the process of a financed real estate transaction, this term means that a buyer has made an offer on a property and it has been accepted by the seller. The escrow funds, good faith or down payment, are held by an escrow agent, an attorney or title company for the protection of the buyer and the seller, until all the lender conditions have been met and the transaction is closed.
After the home purchase, the mortgage lender will also provide an escrow account that includes the monthly payment, insurance and property taxes; the property taxes and insurance funds will be disbursed as they are due.
Many homes are governed by home or condo associations that require fees that will not be held in an escrow account, and the owner is responsible for making the payments on their own. Keep in mind that HOA and COA fees are just as important as making a timely mortgage payment, and if they are not paid, the association can get a lien on the property.
While being in escrow sounds promising, there are many details to cover in a transaction, before we have a done deal! (source: Realty Times, Investopedia.com)
Miriam Hernandez, Broker-Owner ELC Real Estate LLC, elcrealty@gmail.com (305) 804-9394.