Money in the escrow account is your money, and it remains your money until the lender uses it to pay a required expense. The two most common expenses paid from escrow are property taxes and property insurance. There could be other expenses too.
The property taxes paid from the escrow account are deductible on the SCH A in the tax year they are actually paid, regardless of what tax year those taxes are paid "for".
Property insurance paid from escrow is not deductible for your primary residence, 2nd home or vacation home. Insurance cost is deductible only if the property is business use - such as residential rental property. There are other fees that could be paid out of escrow too. For example, HOA fees could be paid out of escrow. But they are not deductible unless the property is some type of business use, such as rental property.
