The HSH Mortgage Glossary D-E

To view a linked word list, View the Summary

Debt
An obligation, Specifically, the amount owed.
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Debt To Income Ratio (DTI)
Total outstanding debt as a portion of total income. Used by lenders as a measure of credit worthiness.
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Deed
The legal document which certifies title to a property.
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Deed-In-Lieu
A means of avoiding foreclosure by conveying title to the lender. The lender has the option of whether to accept a deed-in-lieu, to proceed with the foreclosure, or both.
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Deed Of Trust
Used in place of a mortgage in some states. The deed to a property is held by a trustee (title company or other third party) with the condition that it will be conveyed to the borrower when the mortgage is paid off.
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Default
Failure to make payments within a specified period of time. A finding made by a lender prior to beginning foreclosure proceedings.
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Delinquency
Failure to make mortgage payments when they are due. Policies vary from lender to lender but a borrower is generally reported delinquent if a payment is more than 30 days late.
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Depreciation
A decline in the value of property; the opposite of appreciation.
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Discount Point
A prepayment of interest equal to 1% of the mortgage amount. See Point, Origination Fee
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Down Payment
A part of the purchase price, paid in cash, to cover the difference between the purchase price and the loan amount. Typically between 5% and 20% but can be more or less.
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Due-On-Sale
A provision which requires that the remaining balance due be paid if the borrower sells the property or transfers title to another party.
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Earnest Money
A deposit made by the potential home buyer which restrains the seller from offering the property to another party for a specified period.
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Easement
A right of way allowing access to or over a property for a specific purpose, such as for a power line, or a road for access to another property.
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Eminent Domain
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.
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Encroachment
An illegal intrusion on another property by a fence, structure, etc.
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Encumbrance
Anything that affects or limits the title to a property, such as a lien or mortgage, easement, or a lease or other restriction.
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Equity
The difference between the fair market value of a property and any lien or mortgage. The net amount the owner would realize if the property were sold.
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Escrow
Funds deposited with a third party to be delivered upon the fulfillment of a condition. A special account created to hold money for taxes and insurance, or to hold deposit money prior to closing.
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Escrow Account
An account created for a specific purpose, such as to hold money for taxes and insurance, or to hold deposit money prior to closing.
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Estate
The total of all the real property and personal property owned by an individual at time of death.
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Eviction
A legal proceeding to expel an occupant from a property.
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Examination Of Title
An abstract of report on the title of a property, taken from public records.
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