26
Jan
11

Be Safe With An Escrow Account

In real estate transactions, escrow generally refers to a deposit of funds by one party in an account that will be transferred to another party upon completion of a particular set of conditions;  For example often time refers to the portion of a mortgage payment that is designated to pay for taxes and hazard insurance.  It is separate from the principal ann interest portion of a mortgage payment.  Some mortgage companies require borrowers to maintain this type of financial account for the life of the loan while others simply offer it as an option.

An escrow account may also be used by a buyer when they are purchasing a home from a seller who agrees to make repairs to the property before they receive their payment.  The escrow officer will disburse the funds only when all the repair provisions have been met and the account will be closed.

Whether you are buying or selling real estate, understanding what this term means can go a long way towards a smoother sales process.  If you still have questions feel free to contact Title Junction!

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Jennifer Ferri, Owner

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