Easement
A right-of-way given to a person authorizing them access to an owner’s land.
Equity
Ownership interest in a property. This is the difference between the home’s market value and the outstanding balance of the mortgage loan (as well as any other liens on the property).
Escrow Account
The actual account where the escrow funds are held in trust.
Escrow Analysis
A periodic review of escrow accounts to make sure that there are sufficient funds to pay the taxes and insurance on a home when they are due.
Escrow Payment
The portion of the borrower’s monthly payments that are held by a lender or servicer to pay taxes, mortgage insurance, hazard insurance, and other items as they become due. Also called impounds or reserves in some states.
Escrow Shortage
Amount by which current escrow account balance falls short of the projected target balance at the time of an escrow analysis.
Escrow Surplus
Amount by which current escrow account balance exceeds the projected target balance at the time of an escrow analysis.
