Escrow is a term that is often used in the real estate industry, but many people are unsure about what it actually means. One common question that arises during the escrow process is whether the seller is responsible for paying the mortgage while in escrow. To fully understand this, it’s important to understand what escrow is and how it works.<\/p>\n
Escrow is a process where a neutral third party holds onto funds and important documents during a real estate transaction. This is to ensure that both the buyer and seller fulfill their duties and obligations as outlined in the sale agreement. <\/p>\n
One of the responsibilities of the seller in a real estate transaction is to continue making payments on their mortgage while the property is in escrow. This is because the seller still technically owns the property until the closing is complete, and therefore, they are still responsible for all associated costs, including the mortgage payments.<\/p>\n