Escrow account is a financial arrangement where a neutral third party holds and manages funds for two parties. of a mortgage transaction, an escrow account is used to hold funds for various purposes such as property taxes, homeowners insurance, and other related. This ensures that the necessary funds are set aside and available when these payments become due. Escrow accounts provide a level of security and transparency for both sellers, as it helps to ensure that all financial obligations are met during the mortgage process.
