- Default
Failure to make loan payments on a timely basis or to
comply with other requirements of a mortgage.
- Deficiency Judgment
- Personal claim against the
debtor when the sale of foreclosed property does not yield sufficient proceeds
to pay off the mortgages, accrued interest, legal fees, etc.
- Delinquency
Failure to make mortgage payments when due.
- Delinquent Mortgage
- A mortgage for which the
borrower has failed to make payments as required in the loan documents. If
the borrower can't bring the payments current within a certain time period, the
lender may initialize foreclosure proceedings.
- Deposit
A sum of money given to bind the sale of real estate,
or a sum of money given to ensure payment or an advance of funds in the
processing of a loan. See earnest money deposit.
- Depreciation
A decline in the value of property because of physical
or economic changes such as wear and tear; the opposite of appreciation.
- Discount Points
Amounts paid to the lender at origination to lower the
rate on the face of the note. See point.
- Down Payment
The part of the purchase price of a property that the
buyer pays in cash and does not finance with a home loan.
- Draw Period
The time period in which the borrower may access and
use a line of credit.
- Due-on-sale provision
A provision in a mortgage home loan that allows the
lender to demand repayment in full if the borrower sells the property that
serves as security for the loan.
- Easement
A right of way giving to persons other than the owner to access to or over a property.
- Effective age
An appraiser's estimate of the physical condition of a
building. The actual age of a building may be shorter or longer than its
effective age.
- Eminent Domain
The right of a government to take private property for
public use upon payment of fair compensation to the owner. Eminent domain is
the basis for condemnation proceedings.
- Encroachment
An improvement that physically intrudes or trespasses
on another's property.
- Encumbrance
Anything that affects or limits the fee simple title
to a property, such as mortgages, leases, easements, deeds, or restrictions.
- Endorser
A person who signs a check or promissory note over to
another party. Contrast with co-signer.
- Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other
creditors to make credit equally available without discrimination based on
race, color, religion, national origin, age, sex, marital status, or receipt of
income from public assistance programs.
- Equity
- The value in which the owner has in real estate over and above the mortgages against it. When the mortgage and all other debts against the property are paid in full, the owner has 100% equity in his property.
- Escrow
An item of value, money, or documents deposited with a
third party to be delivered upon the fulfillment of a condition. For example,
the deposit by a borrower with the lender of funds to pay taxes and insurance
premiums when they become due, or the deposit of funds or documents with an
attorney or escrow agent to be disbursed upon the closing of a sale of real
estate.
- Escrow (or impound) Account
The account in which a loan servicer holds the
borrower's escrow payments prior to paying property expenses, such as property
taxes or homeowners insurance.
- Escrow Analysis
The periodic examination of escrow accounts to
determine if current monthly deposits will provide sufficient funds to pay
taxes, insurance, and other bills when due.
- Escrow Collections
Funds collected by the loan servicer and set aside in an escrow account to pay borrower expenses such as property taxes, mortgage insurance, and hazard homeowners insurance.
- Escrow Disbursements
The use of escrow funds to pay real estate taxes,
homeowners insurance, mortgage insurance, and other property expenses as they
become due.
- Escrow Payment
The portion of a borrower's monthly payment that is
held by the loan servicer to pay for taxes, hazard homeowners insurance,
mortgage insurance, lease payments, and other items as they become due. Known
as "impounds" or "reserves" in some states.
- Estate
The ownership interest of an
individual in real property. The sum total of all the real property and personal property owned by an
individual at time of death.
Loan Glossary 
