You can ask about this schedule when applying for a loan and get a sense how many months of taxes will they need. Things may vary between banks.Your attorney will pay your closing costs, if you wish, out of the monies held in escrow and then will release the balance to you. 5. It is a legal holding account that temporarily retains and distributes payments for property tax, insurance and other related expenses. Insurance contingency clauses allow home buyers to back out of a sale if they cannot secure home insurance for the property. The law in Virginia gives buyers and sellers a choice of using an attorney or a title and escrow company to handle their real estate settlement. Escrow accounts can be created to hold funds to pay homeowners insurance and property taxes for the owner. Most commonly asked questions and answers when buying a home on the East End of Long Island. Financing and escrow make it pretty simple to keep your home insurance until your house is sold, protecting you and your home until the last moment. The escrow account can include funds for expenses like property taxes, mortgage insurance, homeowners insurance, HOA fees and flood insurance.