Debt An amount owed to
another. See
installment loan
and revolving liability.
Deed The legal document conveying title to a property.
Deed-in-lieu A deed given by a mortgagor to the mortgagee
to satisfy a debt and avoid foreclosure. Also called a "voluntary
conveyance."
Deed of trust The document used in some states instead of a
mortgage; title is conveyed to a trustee.
Default Failure to make mortgage payments on a timely basis
or to comply with other requirements of a mortgage.
Delinquency Failure to make mortgage payments when mortgage
payments are due.
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; the
opposite of appreciation.
Discount points
See point.
Dower The rights of a widow in the property of her husband
at his death.
Down payment The part of the purchase price of a property
that the buyer pays in cash and does not finance with a mortgage.
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Due-on-sale provision A
provision in a mortgage that allows the lender to demand repayment in
full if the borrower sells the property that serves as security for the
mortgage.
Earnest money deposit A deposit made by the potential home
buyer to show that he or she is serious about buying the house.
Easement A right of way giving persons other than the owner
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.
Effective gross income Normal annual income including
overtime that is regular or guaranteed. The income may be from more than
one source. Salary is generally the principal source, but other income
may qualify if it is significant and stable.
Eminent domain The right of a government to take private
property for public use upon payment of its fair market value. Eminent
domain is the basis for condemnation proceedings.
Employer-assisted housing A special Fannie Mae housing
initiative that offers several different ways for employers to work with
local lenders to develop plans to assist their employees in purchasing
homes.
Encroachment An improvement that intrudes illegally on
another’s property.
Encumbrance Anything that affects or limits the fee simple
title to a property, such as mortgages, leases, easements, or
restrictions.
Endorser A person who signs ownership interest over to
another party. Contrast with co-maker.
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.
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Equity A homeowner's financial interest in a property.
Equity is the difference between the fair market value of the property
and the amount still owed on its mortgage.
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 account The account in which a mortgage servicer
holds the borrower’s escrow payments prior to paying property expenses.
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 servicer and set
aside in an escrow account to pay the borrower’s property taxes,
mortgage insurance, and hazard insurance.
Escrow disbursements The use of escrow funds to pay real
estate taxes, hazard insurance, mortgage insurance, and other property
expenses as they become due.
Escrow payment The portion of a mortgagor’s monthly payment
that is held by the servicer to pay for taxes, hazard 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.
Eviction The lawful expulsion of an occupant from real
property.
Examination of title The report on the title of a property
from the public records or an abstract of the title.
Exclusive listing A written contract that gives a licensed
real estate agent the exclusive right to sell a property for a specified
time, but reserving the owner’s right to sell the property alone without
the payment of a commission.
Executor A person named in a will to administer an estate.
The court will appoint an administrator if no executor is named.
"Executrix" is the feminine form.
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