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In mortgage lending, the property itself serves as collateral for a mortgage loan.. construction loan: A short-term loan financing improvements to real estate, such. to obtain financing within a specified period. escrow: Money placed with a third.. Prior to delivery, CLD contacts the borrower and obtains funds for the tax and.
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Understanding The Escrow Process. The escrow company acts as a neutral third party to collect the required funds and documents involved in the closing process, from the initial earnest money deposit to the loan documents to the signed deed. In some areas, attorneys may handle this process instead of an escrow company and it may be called "settlement" rather than "escrow".
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