Clause contained in a mortgage loan agreement, triggered by loan default that requires repayment of the entire debt immediately.
Judgment a creditor seeks against a borrower when a foreclosure sale doesn't satisfy the entire debt.
AKA "Due on Sale." Clause in a mortgage loan agreement that requires repayment of the entire debt if the property is sold.
Fee paid to the lender to "buy down" the interest rate. Calculated as a percentage of the loan amount. (1 point equals one percent of the loan amount).
Deed in Lieu of Foreclosure
AKA "Friendly foreclosure." When a mortgagor deeds the property to the lender (mortgagee) to avoid foreclosure.
A judicial procedure to force the sale of real property pledged as collateral for a loan in which the borrower has defaulted.
The borrower in a mortgage loan who pledges their real property as collateral.
Fee charged by a lender for the early repayment of debt. (Prohibited on Federally related loans).
Instrument by which a borrower (mortgagor) pledges real property as collateral, creating the lien. Allows the lender to foreclose upon loan default.
Loan agreement detailing the specific terms and the borrower's promise to repay.
The lender in a mortgage loan that receives and holds the pledge of real property (mortgage) as collateral until the debt is repaid.
Statutory Right of Redemption
Right, created through state statute, to repurchase property within a specified time frame that has been sold through a forced sale such as foreclosure or tax sale.
Agreement to become personally responsible of another's contractual obligations. Original party is not automatically released from obligation.
Mortgage loan provision requiring the lender, upon repayment of the debt, to issue a "satisfaction" or "release" letter removing the lien created by the mortgage.