The escrow account is a temporary account created by the escrow company once the sales contract is signed between the seller and the buyer. <\/p>

This account is used to hold funds that would be disbursed upon completion of the real estate transaction. <\/p>

These funds will be disbursed only after all the conditions that are set up in the contract are settled. <\/p>

After the initial sales contract is signed between the buyer and the seller, the buyer will give an earnest money deposit check to the escrow company which will be held in this escrow account. <\/p>

The earnest money deposit check given by the buyer acts as a commitment to purchase the property. <\/p>

Some common conditions in the contract are the buyer acquiring a mortgage and passing the property inspection.<\/p>\n

A mortgage escrow account is when a borrower chooses to pay his homeowner\u2019s insurance and property taxes every month along with his mortgage payments. <\/p>

These payments are saved in an escrow account maintained by the lender. The borrower will pay the taxes and insurance amount monthly to the lender, and the lender will pay the taxes and insurance when they are due from the escrow account.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t