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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).
An account (held by the mortgage company) where a homeowner pays money toward taxes and insurance of a home.
The actual account where the escrow funds are held in trust.
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.