What is an Escrow?
As a protection to buyers, sellers and lenders, the escrow process was developed to handle the transfer of these funds and related documents from one party to another. This neutral third person holds the money or items for disbursement upon the happening of a specified event or the performance of a specified condition.
The escrow holder is provided with the necessary information to close the transaction. This can include loan documents, statements, fire and other insurance policies, title insurance policies, terms of sale and any seller-assisted financing, and requests for payment for various services to be paid from escrow funds.