FOR IMMEDIATE RELEASE
Contact:
Jessie Eide
Realtor
EXIT Realty Foothills
909.593.0502
admin@ourexitteam.com
EXIT Realty Foothills Explains Escrow
What is Escrow?
La Verne, CA (Grassroots Newswire) 12/28/2010 --
One of the easiest way to explain the concept of escrow is the old standby of two people making a bet and a third detached person to hold the money until the bet was resolved. The same goes for when you purchase a home. You open an escrow account when you take out a mortgage and the escrow company holds all money until the purchase is completed.
After putting money into escrow (the third neutral party) the role of the escrow officer is to carry out the instructions that was agreed upon by both parties, usually called a purchase contract. The funds will be released when all terms on the contract are fulfilled. You can use a escrow in anything from multibillion dollar projects to purchases made through an online auctions.
The reason you use escrow is to protect all parties involved. For example it ensures that people pay their taxes and insurance on time. This keeps a borrower from defaulting on property taxes, which could put a lien on the house, leaving lender with no collateral and the borrow in a sticky situation.
For more information about EXIT Realty Foothills, please call 909.593.0502. EXIT Realty Foothills is located at 1339 Foothill Blvd, La Verne CA 91750.
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