In simple terms, what is "escrow"?

Question

In simple terms, what is "escrow"?

Answer 1

"Escrow" is funds (or something else of value) set aside for a specific purpose, and is generally protected from being used for any other purpose.  

For instance, many property mortgages collect (in addition to payments toward principal and interest) money every month to pay property taxes.  The money is accrued in an "escrow" account.  Neither you nor the mortgage holder is permitted to use that money for anything else.