mortgage escrow accounts
WHAT IS AN ESCROW ACCOUNT?
A mortgage escrow account is usually required and established by the bank to hold funds collected from the borrower to pay taxes and insurance premiums on the property securing the loan.
Escrow accounts are not required in every state. Most commonly referred to as non-escrow states, these states follow a traditional closing method where documents are signed and monies are exchanged at the closing with all parties present. Escrow states require a third-party to be present at closing to ensure the transfer of ownership is in accordance with the written contract agreed upon by all parties.
As a mortgage provider in Pennsylvania, New Jersey, Delaware, and Ohio, these states require escrow accounts, but there are differences in the third-party members required to handle the transaction.
- Delaware: attorney
- New Jersey: northern NJ - attorney; elsewhere - title agents
- Ohio: title company or lender
- Pennsylvania: title company, real estate agent, or attorney
An escrow account is typically established when you close your mortgage loan; however, you can open an escrow account at any time by contacting your lender. Talk to a Univest lender and learn more about opening an Escrow account today!