What is Escrow?

Escrow
To finalize the sale of a place, a neutral, third party (the escrow holder) is employed to assure the transaction will close appropriately and on time. A place is said to be in escrow when in the closing process, money is secured by a third party on behalf of two parties when the exchange of money takes place. A simple way to think of what an escrow company does is to compare it to PayPal for Internet purchases.

The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are met prior to the sale being finished.

	Don't let the unknown prevent you from becoming a homeowner. We can help you work your way through the process. E-mail us at aimeec@crosslandrealestate.com to get some free information.

These are the pieces of paperwork that escrow agents usually look for: Tax statements Fire and other insurance policies Title insurance policies Terms of sale and any seller-assisted financing Requests for payment for various services to be paid out of escrow funds Loan documents

You're ready to close when all steps are complete in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. Title to the home is then given to you as new homeowner and correct title insurance is issued as noted in the escrow policy.

At the close of escrow, payments are submitted in an acceptable form to the escrow. I'll keep you informed on the what comes next.

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow instructions Request title inquiry Meet the bank's requirements as specified in the escrow agreement Accept payments from the buyer Prorate tax, interest, insurance and other fees according to guidelines Record deeds and other legal documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer are met Disburse monies and finalize instructions		Offer advice - the escrow holder must stay at a fair, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Now you know more about being in escrow. And, you can be a smarter home buyer and future homeowner.