Holding Escrow

An open escrow for the life of a land contract, under which the escrow holder may be empowered to collect payments due under the contract and pay underlying encumbrances, and record a deed and purchase money mortgage, which are executed at the time of the inception of the land contract and held in the escrow, in the event of default by vendee. A cumbersome and costly method not used in all states, and in states where used, rapidly being replaced by the security (installment) land contract.