During a home sale, there will be an escrow company involved that handles all the money changing hands. The escrow company will hold earnest money, real estate commissions, inspector fees, profits from the home sale, and “prepaid items” (taxes and insurance paid in advance) until the sale is finalized.u003cbr/u003eu003cbr/u003eu003cemu003eAfter u003c/emu003eyou buy a home, escrow takes on a different meaning. For homeowners, an escrow account allows the mortgage lender to manage property taxes and insurance on your behalf. You simply pay everything to your lender as a monthly sum, and the lender forwards payments to the insurance company and tax authority via an escrow account.