Can you borrow out of an escrow account?

Answer by  rjuliet (44)

No, you can't borrow money from an escrow account. The purpose of an escrow account is to guarantee that a certain amount of money is available to spend on a specific purpose at a specific time. Borrowing from this account, would nullify the guarantee.

Answer by  quinn1988j (42)

Money cannot be borrowed from an escrow account. The purpose for an escrow account is to make sure the money is in safe keeping for it's intended use.

Answer by  smith79 (129)

No, you cannot borrow money out of an escrow account. It is used a method of safe keeping money that will be used to pay off a loan.

Answer by  Liz59 (10966)

I believe there are some restrictions regarding the use of the escrow account. If you would like to take some money out of this account, then you will to try and see. Ask a financial advisor to guide you. It also may not be a smart thing to take out money from that account.

Answer by  vkcopper (358)

No, this is money to be given as a deed or bond, money to be delivered to a third person for the fulfillmen of purchasing that deed, bond or piece of property.

Answer by  Srfingfreak (697)

No, you cannot. Escrow refers to money which is held by a third party for a fee. Money in Escrow is usually placed there to guarantee that the money exists to the person owed. When a transaction is completed, the balance of the escrow account is transferred, but is untouchable by either party until then.

Answer by  oldmom (716)

Absolutely NOT. You may not borrow out of an escrow account because the very reason the money is IN an escrow account is to keep it safe and secure for a specific use, and you have a fiduciary responsibility to use it for that escrow use only. If you misuse escrow money, you may even be committing a crime.

Answer by  Zaka (2315)

Only if the agreement between all concerned parties had previously agreed on a contingency circumstance. Otherwise, the answer is no. It is a holding account that serves as a depository fund in a litigation matter or an inheritance dispute or a settlement of a time-lapsed contract. Borrowing against an escrow account is a breach of contract.

Answer by  Liz59 (10966)

I suppose you can. It's worth a try. It depends on the type of account you have with that company.

Answer by  Samantha57 (391)

No. By definition, an escrow account is created so that a third party (usually a bank) can have a custodial, but not ownership, interest in funds on behalf of two or more parties. It is as if you and your friend make a bet, and ask your dad to hold onto the money for safekeeping until the bet is won.