What is a Collection Escrow?
Collection Escrows are established to hold original documentation and accept and disburse payments on contracts, notes and deeds of trust between private parties. As an escrow agent, we will hold the documents necessary to remove the lien from the property at the time the collection is fully paid. No further follow-up will be required by the parties. During the term of the collection escrow, we will accept payments, calculate the principal and interest, as requested, disburse payments and report interest paid and received. A collection escrow is beneficial to both buyer and seller, as an independent third party will be holding the documents and will comply with the Internal Revenue Service’s requirement to report interest earned or paid by the parties involved in the installment purchase of real estate. You can be assured that all payments will be processed accurately and in a timely fashion.
