Home Buying in Miami>Question Details

Sheena Patel, Other/Just Looking in Miami, FL

What's an escrow account? How will I know if I need one?

Asked by Sheena Patel, Miami, FL Thu Mar 7, 2013

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An escrow account can give a borrower piece of mind. Escrow account is where money is held by a party, but does not belong to the party. Normally, if you are buying a property, the real estate company, attorneys or a title company will hold your deposit in escrow until the closing occurs. Seller normally ask for a deposit to make sure that the buyer is serious about the buying process.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
2 votes Thank Flag Link Thu Mar 7, 2013
escrow accounts are where monies are held by 3rd parties "in Trust" for some transaction, be it real estate, probate, business needs etc ... in other words it is to secure & assure that money ear-marked for a particular purpose is held "in escrow" for just that purpose. You'll need one if you're buying a home for example. Attorneys, banks, Realtors, Title Companies etc have them for these purposes.
If you need anything further please feel free to call me during normal business hours at the contact info in our website link below. And please also send your email address and phone number, I'll be excited to help you with all your real estate needs and honored for the business opportunities.
0 votes Thank Flag Link Fri Mar 8, 2013
Good Morning Ms. Patel,

If your question is related to an escrow account for the mortgage you obtain on the purchase of a home, then it wiould be the lender that would in part make the determination if it is required or not. For the most part, when a buyer places less than 10% as a downpayment the banks will require that when you get your mortgage an escrow account be set up so when you make your monthly mortgage payment you are also making 1/12 payments towards your property taxes and insurance. When the insurance and property taxes become due and payable the bank makes the payment on your behalf. There are instances in which a lender will allow a buyer to have the escrow requirement waived for an extra fee, but again this is dependant on the individual lender. You will want to speak to your loan officer who can then explain how the process works. If you are in need of a good loan officer I have the name of a gentleman I have worked with and he is great at answering these and all other questions buyers have on financing. Good luck, and if you have additional quesitons feel free to contact me.

Lila Lopez
RE/MAX Advance Realty
homesbylila@yahoo.com
305-772-2521
0 votes Thank Flag Link Fri Mar 8, 2013
An escrow account generally refers to money held by a third-party on behalf of other transacting parties. I am not sure if your question is related to the escrow deposit money on a sales contract or the escrow account on your mortgage.

In Real Estate related matters, an escrow account is typically used to hold the Buyer's escrow deposit money until the closing date. Escrow funds are also held on behalf of the Seller for issues pending after the closing date, outstanding water bills, credit repairs, etc.

Loan Servicing Companies establish an escrow account to pay for property taxes and insurance during the length of your mortgage. This escrow account is usually required by the Mortgage Lender to avoid the risk of Homeowner not paying property taxes and/or insurance.
0 votes Thank Flag Link Thu Mar 7, 2013
Escrow is an account established by broker for the purpose of holding funds on behalf of the broker's client.
Are you currently working with a realtor? If you need any assistance please contact me at meg@viviendarealtors.com or call me at 305.877.2880. All services for buyers are free.


Meg Sahdala
Vivienda Realty

E-mail: meg@viviendarealtors.com
Tel: 305.877.2880
Fax: 305.675.3976
http://www.PerfectFloridaProperties.com
0 votes Thank Flag Link Thu Mar 7, 2013
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