When you encounter the term "escrow" in the context of a mortgage, it typically refers to a financial account managed by a neutral third party. This account holds funds on behalf of the buyer and seller during a real estate transaction. The third party, often an escrow agent or company, ensures that the funds are handled according to the terms of the agreement until the transaction is finalized.
This can include holding the buyer's earnest money deposit and managing payments for property taxes and insurance. Escrow helps protect both parties by ensuring that the funds are disbursed correctly and that all conditions of the sale are met before the deal is closed.
TEXAS RESIDENTS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A
MORTGAGE COMPANY OR RESIDENTIAL MORTGAGE LOAN ORIGINATOR
LICENSED IN TEXAS SHOULD SEND A COMPLETED COMPLAINT FORM TO THE
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (SML): 2601 N. LAMAR
BLVD., SUITE 201, AUSTIN, TEXAS 78705; TEL: 1-877-276-5550. INFORMATION AND
FORMS ARE AVAILABLE ON SML'S WEBSITE: SML.TEXAS.GOV.
