Escrow News

What is an escrow and how does it benefit me?

what is escow

Escrow is an arrangement in which transacting parties retain a third party, an escrow agent or escrowee, whose job is to safeguard funds and assets according to conditions that have been agreed upon in advance. Such an arrangement protects the transacting parties in the deal, providing that neither has an unfair advantage and that both are earnest about the deal.

Using Escrow in a Private Placement Memorandum

Using Escrow in a Private Placement Memorandum

A private placement memorandum (PPM) or offering memorandum (OM) is the document used in a private offering of securities to a small number of uniquely qualified investors. Also known as an offering circular (OC), a PPM is typically used by a company to raise capital and avoid using debt or a traditional public offering.

Impound Escrow Accounts – Easier for Buyers and Lenders

What is an impound escrow account?

An impound escrow account is set up for a real estate mortgage loan to pay certain property-related expenses such as private mortgage insurance, homeowner’s insurance and property taxes.  Frequently, lenders require these impounds to be paid with the borrower’s monthly loan payment.  Often, loan regulations require impounds to be set up for a mortgage loan collateralized by

Loan Servicing for Owner Carry Loans

Owner Carry Loans

It may come as a surprise to many that around 20% of home sales in the U.S. involve some form of an "owner-carry loan." Also called “seller financing” or “owner financing,” the term refers to the notion of a buyer of a property directly paying the

Five Questions to Ask When Selecting an Escrow Company

Five Questions to Ask When Selecting an Escrow Company

Choosing an escrow company to manage your escrow transaction requires some due diligence. An escrow is set up to protect all parties involved in a given transaction, and prior to signing a contract, it’s a good practice to verify the expertise, level of security and standards of customer service that you expect from the company that will be facilitating your escrow arrangement. 

There are many states that do not require the registration or licensure of escrow agents.  Knowing how and where your escrow funds, documents and proprietary information are being held is critical. The safety and security of funds through timely confirmation and verification of funds through electronic banking is a must for cash holding and loan servicing escrows.  Authentication of secure depositories for digital and software source code escrows in a secure environment is paramount.   

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