The escrow account can be a money market account if you wish but as others implied you can pull money out as you want very freely. My loan officer friend agreed to put the money into a escrow account for us with the intent to hold until the foreclosure was over I sent the rent to the loan officer every month. When the process was over I took out some money to start a new lease, pay first months rent and the rest of the money had been sitting in the account with some going to Lawyer fees.
Marion you do not want to be in the middle anymore find another home. I have three kids and I know it is very difficult however children will grow and adapt. My parents moved many times when I was growing up and none of my siblings turned out to bad except me! Your parenting is what matters here not changing homes. Good Luck I wish you guys the best in finding a new home!