pls.... can any body explain to me what is an escrow account & what escrow means. thanks in advance.?

Answer 1

Many people abpve explained Mortgage Holder escrow accounts well. When you're renting, your landlord may hold last month's rent and a security deposit in an escrow account. This account is kept separate from the landlord's personal accounts for the tenants protection. If a landlord goes bankrupt, for example, the escrow accounts are protected, as they are not considered the landlord's personal property. Hope that helps!

Answer 2

normally when you buy a place the your payment will include insurance property taxes and any other monthly fees that might apply.. there has to be someplace to park this money until the payments are due -- so an escrow account is set up. normally this is all estimated so when you sale the house you should have not much but some left over money in your escrow account.

Answer 3

Escrow is usually used with real estate transactions but can be used with any buy/sell transaction. What the escrow does is make sure that both the buyer and seller have done all the things required to close the transaction with nobody getting the short end of the stick..

Answer 4

Call your local Realtor's Association and ask for a list of the pertinent classes - you do not have to be a Realtor to take most of them. The Escrow account is simply a separate savings account that is used only for handling the monies specified, in your case your tenant's security deposits. This keeps the money separate and protects you in case of a rental dispute. You should talk with your tax professional about the types of accounts you need for your rents to go into as well. As a rental property owner/manager, I have 3 accounts for the rentals - an escrow savings account for the security deposits, a savings account for the rents left over after bills, (for repairs, etc), and a checking account that the rents go into where all the money is disbursed for mortgage, insurance and repair payments.

Answer 5

Escrow accounts are someone else holding the money for your benefit. The funds are used to help close a house or to pay taxes and insurance with money you paid monthly with your principal and interest.

Answer 6

"Escrow" (in layman's terms) means 'money held for someone else." If you have an "escrow account" with your mortgage payment, that means each month you pay 1/12 of your taxes and insurance along with your principle and interest. Your lender holds your taxes and ins. money "in escrow" pending their individual due date. They hold the money on your behalf.

Answer 7

Everything you have ever wanted to know about Escrow

http://en.wikipedia.org/wiki/Escrow

Answer 8

I'm assuming your referring to a mortgage ecrow account. It's an account that holds funds for, insurance, taxes and other expenses to be paid when they are due.

Answer 9

a 3rd party holds onto the money until both parties in an agreement have both completed their ends of the transaction, etc