Real Estate Glossary

What is Escrow Analysis?

Escrow analysis is a process by which the lender or escrow agent examines the escrow account to ensure that there is enough money to pay the upcoming property taxes and insurance. The lender or escrow agent also checks if the account is in balance, making sure that the borrower's payments match the expected expenses. Sometimes, the lender or escrow agent may recommend adjustments to the borrower's payments if there is a shortage or overage in the account.