Profile picture for phinchea

where does escrow money go to?

  • January 07 2014 - Long Beach
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (7)

The money is "held" by the escrow company who takes responsibility for it's disbursement on behalf of the buyer and seller. Escrow is the best way to go and it will protect you.
  • January 11 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Escrow generally refers to money held by a third-party on behalf of transacting parties.  Money held in escrow doesn't go anywhere until it is needed.  The 3rd part, a bank, a broker or title company will disburse the money to the proper party per the contract when necessary.  Escrow accounts are used to hold down payments, pre-paid fees are interest, pre-paid taxes and insurance and any other amount that will be required to pay bills on behalf of another party.  The purpose of an escrow is to show good faith by depositing the money in advance but not allowing the receiver to get it before they have completed all contractual obligations.
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

If you are referring to the portion of your house payment that pays insurance and taxes, that money is held by the lender that is servicing (collecting your payments) your loan. When the annual bill for insurance and taxes are due, they will then pay the amount in full.
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The deposit you provide when you sign your offer to purchase/purchase and sale go into a separate bank account of the listing broker.  It is not co-mingled with the other finances or bank accounts of the listing broker.  Many brokers actually have the escrow account in a different banking institution to ensure that the monies are completely separate.
Hope this helps.
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.


Hi,

Are you wanting to know more about closing costs? Closing costs include all the expenses incurred and escrow fees are part of your closing costs. When your offer is accepted and escrow is opened, the escrow officer can provide you with a listing of expected costs along with an explanation for what each fee covers. 

Also, Zillow has an explanation of closing costs that may be helpful:
http://www.zillow.com/wikipages/List-of-Closing-Costs-and-Fees/

Hope this helps!
  • January 08 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for phinchea
closing cost
  • January 07 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

WHAT money do you speak about ? ... the DEPOSIT ?
  • January 07 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.