Page 13 of 29Glossary Last Update

5/2024 represents the portion of the property that the homeowner truly owns and can potentially use as collateral for loans or lines of credit. Modules 1.4, 2.1, 4.1, 4.2, 5.1, 5.3 Escrow Escrow is the placement of upfront payments towards the home-buying process with a third party until the deal closes. Escrow protects all parties in the real estate transaction. Commonly used by lenders to allocate funds for a homeowner’s property taxes, insurance premiums, or other fees when they become due. Modules 4.2, 5.1 Escrow account An account in which escrow funds are held to be used for specific purposes by parties carrying out a mutual transaction.