Noun. Real estate term. Period of time in which your money is with a title company, the deed is with the title company, and you're waiting to get the house you're buying. Characterized by increasing bouts of anxiety, craziness, and buyer's remorse as the insurance gets turned down, the plumbing -- and your dreams -- dissolve, and your hard-earned money diminishes at a rapid rate.
Yup, we're in escrow. Tomorrow I'm checking myself into the loony bin.
(n.) A deposit held in trust or as security; in escrow, phr. used of money, etc., so held. (N. Amer.)
(v.) To put in escrow.
there now ya know
I'm not sure what context "escrow" was used in friends, but I'm sure it was wrong.