The role of a sound Escrow Co. in owner financing is of the utmost importance. The escrow company will take in the payments that you make on the real estate contract and disburse the funds according to the contract. Why do you make your payments to the escrow co., and not the seller? Consider this. You purchase a home on a real estate contract, and begin making the payments to the seller in a timely manner. 6 months go by, then you receive a knock on the door and the sheriffs department is asking you to vacate the premises for default of payment. Although you have made your payments on time, he seller never payed the underlying mortgage co, and pocketed your money. This happens more often then you would think. By making your payments to the Escrow co., and not the seller you are assured the underlying mortgage is being paid and is current.