Terms to be familiar with:
Bankruptcy -
A proceeding in a federal court in which a debtor,
who owes more than his or her assets, can discharge
personal liability for his or her debts. This affects
the borrower's personal liability for a mortgage debt
but not the lien of the mortgage.
Default - The
failure to perform an obligation as agreed in a contract.
Delinquency
- A loan payment that is overdue but within the period
allowed before actual default is declared.
Escrow payment
- That portion of a mortgagor's monthly payments held
by a lender or services to pay taxes, hazard insurance,
mortgage insurance, lease payments, and other items
as they become due. Also called impounds or reserves
in some states.
Foreclosure
- A legal procedure in which property mortgaged as
security for a loan is sold to pay the defaulting
borrower's debt.
Hardship -
circumstances beyond the mortgagor's control, which
have temporarily rendered the mortgagor unable to
meet his/her monthly mortgage obligation.
Investor - The
owner of a loan Tax Lien - A claim against property
for unpaid taxes.
Title - The
legal evidence of ownership rights to real property.
Title Search
- An examination of public records to disclose the
past and current facts regarding the ownership of
a given piece of real estate. .
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