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is real estate escrow different frmo the lender escrow account?

by deaconwellsh352629 from Concord, Pennsylvania. Mar 6th 2015 Reply

Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

It depends on how the terms are used and the context, an escrow account with a mortgage is where the property taxes and/or homeowners insurance are held by a mortgage servicer until the payment is actually due once or twice a year. Escrow can also mean something different as part of a real estate transaction, having to do with your earnest money being held in escow by an attorney or title company.

Mar 6th 2015
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Escrow is nothing more than a cash account held by someone other than the borrower / buyer.. In relation to selling or buying a home, it's oftentimes referred to as "Opening Escrow".. which simply means that a 3rd party, usually a title company, is holding funds (earnest money deposit) to be applied to a sale. The lender escrow is an account that opened by your lender and is funded by you each month as part of your mortgage payment.. it's required for most lending programs so that when your taxes and insurance payments come due, then there are sufficient funds in this account to pay them.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

Mar 9th 2015
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