The Ins and Outs of the Escrow Process in Alaska

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In the world of real estate, the word "escrow" is thrown around quite a bit, but many people aren’t 100% sure what it entails. 

Escrow relates to the act of holding money, or even a deed, by a neutral third party until the completion of a transaction or until certain conditions are met. Generally, there are two types of escrow accounts that we refer to in real estate. The first is in reference to a mortgage loan, which is the money set aside to pay annual expenses such as taxes or insurance. All this typically happens automatically with your lender, and if you take a look at your mortgage statement you get monthly, you should be able to see the deposits and credits that are made to that account. 

Another type of escrow account is an account where the funds are held until the completion of a real estate transaction. This is usually done by a closing attorney or a title company, depending on the state you’re completing your transaction in. In this case, the attorney or escrow officer at the title company is sent the real estate purchase agreement and they issue escrow instructions for the parties based on the conditions of that agreement. The escrow holder can then receive money, pay off, and request other invoices to be paid as part of these instructions! 

If you have any questions about the escrow process, please don’t hesitate to reach out to us. We would love to help you in any way possible!