Resources > Glossary > Escrow

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Escrow

Phonetics: es·crow    \'esˌkrō\

Function: noun

Escrow companies often hire mobile notaries to help them close loans. Although the function of an Escrow company is different from a Title company, they often function as a unit.

Definition 1:
An Escrow company is a neutral third party who carries out the instructions of both the buyer and seller to handle all the paperwork of settlement or "closing". Escrow may also refer to an account held by the lender into which the home buyer pays money for tax or insurance payments.

Definition 2:
Title and Escrow companies often function as a joined unit. It is common to see a name such as Orange Title & Escrow.

Definition 3:
Escrow companies take collections in the form of "escrow payments" for accounts. These accounts are used to pay the Borrower's property taxes, mortgage insurance, and hazard insurance (such as flood insurance).

Definition 4:
Escrow disbursements are payments out of the escrow account to pay for taxes and insurance.