Netter Real Estate Inc
Richard Bocchieri, Netter Real Estate IncPhone: (631) 848-0748
Email: [email protected]

3 Quick basics of escrow accounts

by Richard Bocchieri 09/11/2024

Whether you’re a first-time homebuyer or an experienced homeowner who’s been both the buyer and the seller, escrow accounts are things you need to be familiar with.

Here are a few brief need-to-knows and reminders about escrow accounts to help you maneuver the home transaction process:

What is an escrow account?

An escrow account refers to an account, held by a neutral third-party, that ensures payments paid into the account are held securely, while payments being made from the account are being paid as agreed.

These accounts support both buyer and seller by ensuring both parties fulfill their end of the agreement and payments, documents and other important transaction facets are presented and distributed fairly.

You may also opt to use your escrow account for your monthly payments to your mortgage servicer.

Why do I need an escrow account?

Well, that depends. It’s a good idea to have an escrow account from a reputable escrow company. However, if you aren’t paying mortgage insurance, have stellar credit and meet any other criteria set forward by your lender and interested parties, you may not need one.

While that may appeal to some homeowners and buyers, having an escrow account is a great way to ensure all payments are being made appropriately and as an added security measure for both parties. If your credit is low, lender requirements need to be met with more cushion or your lender simply requires an escrow account, you will need one for your real estate transaction.

Are there any risks with an escrow account?

As with most financial transactions, there are minor risks to an escrow account. The most avoidable is mortgage escrow account fraud. While escrow companies take precautions to ensure their clients aren’t involved in any type of fraud, some responsibility falls on the clients to know what signs to be wary of.

Some of the most common antics of fraudulent escrow practices lie with phishing scams, emails requesting personal information, requests for wire transfers and lack of identification from the escrow agent during communication. As a client, ensure your chosen escrow company properly identifies themselves during your communications.

You’ll also want to stay current with the best security practices when operating online. Some of those practices include: watching for scam email addresses, requiring identifying and traceable information when conducting transactions and business, staying current with your internet security and monitoring your account for any suspicious activity or discrepancies.

Escrow may seem to have many strange facets attached to it, but it is an excellent way to keep all parties informed and safe while conducting business. These accounts may also be used to conduct monthly payment transactions for property taxes, mortgage payments and other home-related expenses.

About the Author
Author

Richard Bocchieri

Welcome to Long Island Living at its best! The South Shore of Suffolk County is a suburban area that runs along the shoreline of the Atlantic Ocean. Homes in this area consist of primarily residential properties. This area tends to be diverse in culture and income as it varies by hamlet, village or town. Residents along the South Shore have access to many beaches, parks and recreational activities. I pride myself on my honesty, integrity, hard work and personal service. My first career was in education, starting as a teacher then finishing as a guidance counselor and achieving my Master’s and two PD's. In 1986, I began my real estate career. In a sense, I am still an educator and offering guidance; this time I am outside of the classroom educating my clients on the selling and purchasing processes; which have become so complicated recently and guiding them safely through the confusing and ever-changing real estate market. It is very satisfying to me to help people with not only the greatest financial asset in their lives but their greatest emotional asset; where they celebrate holidays, raise their families and live their lives. I take the needs of my clients very seriously and as a result, I am proud to say, over 90% of my sales are the result of referrals and recommendations. Primarily, my areas of service are the Townships of Babylon and Islip on Long Island’s beautiful South Shore, near pristine beaches and wonderful boating, yet only 55 minutes from Manhattan; truly the best of both worlds. I'm a graduate of the Real Estate Institute and am certified as a Senior Real Estate Specialist. I also hold a license as a Notary Public. Please feel free to call or visit so I can help you fulfill your real estate dreams. I am a Full Service Licensed Real Estate Associate Broker and provide the following: Free appraisal Rental Mortgages International relocation services Sales Home warranty new homes Free school report Waterfront specialist Notary public Please feel free to call or visit so I can help you fulfill your real estate dreams.

For every sales transaction, a a portion of my commission will be donated to Pronto of Long Island, a nonprofit community outreach center who feed the hungry, clothe the needy and provide hope for our neighbors.  

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