Subscribe to RSS - Mortgage

What the Heck is Escrow?

Agent: “Oh, that house is in escrow.”

You: “Huh?”

Escrow seems like a fancy word, doesn’t it? But what exactly is escrow, and how does it work within the context of a home purchase? Keep reading so that you’ll know what this word means the next time it comes up!

A French Connection

If you think escrow sounds vaguely French, you’re right. The word is derived from the Old French escroue, meaning a scrap of parchment paper. In France, escroue later came to indicate a deed or deposit held in trust by a third party.