Escrow is the holding of money or documents by a neutral third party prior to closing. It can also be an account held by the lender (or servicer) into which a homeowner pays money for taxes and insurance.
Source: Federal Trade Commission
A separate account into which the lender puts a portion of each monthly mortgage payment; an escrow account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance, etc.
Source: U.S. Department of Housing and Urban Development
Money placed with a third party for safekeeping either for final closing on a property or for payment of taxes and insurance throughout the year.
Source: Ginnie Mae
Money or a written instrument such as a deed that, by agreement between two parties, is held by a neutral third party (held in escrow) until all conditions of the agreement are met.
Source: U.S. Courts