earnest money deposit
A deposit made by the potential home buyer to show that he
or she is serious about buying the house.
A right of way giving persons other than the owner access
to or over a property.
An appraisers estimate of the physical condition of
a building. The actual age of a building may be shorter or
longer than its effective age.
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.
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.
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.
An improvement that intrudes illegally on anothers property.
Anything that affects or limits the fee simple title to a
property, such as mortgages, leases, easements, or restrictions.
A person who signs ownership interest over to another party.
Contrast with co-maker.
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.
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.
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.
The account in which a mortgage servicer holds the borrowers
escrow payments prior to paying property expenses.
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.
Funds collected by the servicer and set aside in an escrow
account to pay the borrowers property taxes, mortgage
insurance, and hazard insurance.
The use of escrow funds to pay real estate taxes, hazard insurance,
mortgage insurance, and other property expenses as they become
The portion of a mortgagors 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.
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.
The lawful expulsion of an occupant from real property.
The report on the title of a property from the public records
or an abstract of the title.
A written contract that gives a licensed real estate agent
the exclusive right to sell a property for a specified time,
but reserving the owners right to sell the property
alone without the payment of a commission.
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.