What is Escrow?
The term escrow has always been a bit of a mystery, so we wanted to provide some insights into the process. Escrow is a function performed by a neutral third party for a lender and borrower based on written instructions from each of the parties. Although escrow is normally associated with a sale of real estate, it is also used for closing a real estate equity loan transaction. The escrow agent is responsible for gathering mortgage payoffs, property taxes owing and any other liens or loans against the real estate and seeing that they are paid out of the loan proceeds. The agent also conducts the loan closing with the borrower making sure that all documents are signed and recorded as necessary and seeing that the borrower receives the loan funds.
Essentially the escrow agent acts in the capacity of a facilitator to make sure the loan process goes smoothly and conforms to the written intent of both the borrower and the lender. The escrow agent is usually affiliated with a title company that issues the title insurance policy required by the lender. Private Money lenders routinely use an escrow agent for loan closings due to their efficiency and convenience.
Gregory M. Russell uses qualified escrow agents to ensure successful loan experiences for our clients. Give us a call to learn more about the process and how we can work together to meet your loan needs.