Types of escrows: What you should know
There are different types of escrows that are common nowadays. As we already know, escrows are very important in a swift real estate transaction or financial transactions. It is simply a real estate property transfer that involves a third party. The thirty party is the one who makes sure that there is neutrality in the transaction. The third party can be an agent or the seller and the buyer can choose to involve an attorney. The types of escrows are as mentioned below
The real estate escrow. This is a common type of escrow since no transaction or property transfer can be done without a third party. The real estate escrows are always motivated or insisted on by the mortgage lenders.
The escrow is usually to protect the mortgage leaders from suffering loses. Therefore, before buying any house in southern California, mortgage lenders will insist on finding southern California escrow to help with the process of property buying and transfer. That is, before any inspection and before any disclosure, the condition is that an escrow to be present.
Escrow account. This type of account is very useful especially after the client moves into the house. It is usually like insurance that can be used in the paying of taxes the insurance for the homeowner. The money to pay for all that usually comes from the escrow account. The money is usually funded by the home buyer.
Online escrow. This is also another type of an escrow that is common. Those people doing business online usually use online escrow to provide protection for their goods. The account works the same way as any other type of escrow. As usual, a third party is used to keep the money in an escrow account. This is until an agreement is met between the buyer and the seller.