Glossary of Terms

An amount owed to another. See installment loan and revolving liability.

The legal document conveying title to a property.

The document used in some states instead of a mortgage; title is conveyed to a trustee.

A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure.

Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.

Failure to make mortgage payments when mortgage payments are due.

An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.

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.

A decline in the value of property; the opposite of appreciation.

See point.

The rights of a widow in the property of her husband at his death.

The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

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.

This terminology is usually used for second mortgages. See due-on-sale provision.