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Glossary of terms and acronyms used on this site

There are 93 entries in this glossary.
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D

Term Definition
DE

Direct Endorsement. Program permitting lender processed and endorsed FHA mortgages.

Debtor

The person or entity that borrows money. The term debtor may be used interchangeably with the term borrower. Source: www.hud.gov

Deed

A document that legally transfers ownership of property from one person to another. The deed is recorded on public record with the property description and the owner's signature. Also known as the title. Source: www.hud.gov

Deed-in-Lieu

To avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process does not allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure. Source: www.hud.gov

Default

The inability to make timely monthly mortgage payments or otherwise comply with mortgage terms. A loan is considered in default when payment has not been paid after 60 to 90 days. Once in default the lender can exercise legal rights defined in the contract to begin foreclosure proceedings. Source: www.hud.gov

Delinquency

Failure of a borrower to make timely mortgage payments under a loan agreement. Generally after fifteen days a late fee may be assessed. Source: www.hud.gov

Depreciation:

A decrease in the value or price of a property due to changes in market conditions, wear and tear on the property, or other factors. Source: www.hud.gov

Discount Point

Normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan. In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to give you a lower rate and lower payments for part of the mortgage term (usually for one year or less). After the discount period, the ARM rate will probably go up depending on the index rate. Source: www.hud.gov

Document Recording

After closing on a loan, certain documents are filed and made public record. Discharges for the prior mortgage holder are filed first. Then the deed is filed with the new owner's and mortgage company's names. Source: www.hud.gov

Down Payment

The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan. This amount varies based on the loan type, but is determined by taking the difference of the sale price and the actual mortgage loan amount. Mortgage insurance is required when a down payment less than 20 percent is made. Source: www.hud.com

Due on Sale Clause

A provision of a loan allowing the lender to demand full repayment of the loan if the property is sold. Source: www.hud.gov

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