Terms

What Escrow Actually Means in Plain English

Escrow is an arrangement in which money or documents sit with a neutral holder until stated conditions are met. This guide is for homebuyers, sellers, and mortgage borrowers who want to understand closing escrow and monthly tax-and-insurance accounts without financial jargon. It explains who controls the funds, why payments change, how shortages and surpluses arise, which statements to check, and what to do when figures or disbursements appear wrong. Readers also get a practical audit method for deadlines and account math.