An amount owed to another. See installment loan and revolving liability.
deed
A deed is a signed and usually
sealed legal instrument in writing used to grant a right. Deeds have
historically been part of the broader category of instruments under seal,
requiring only the affixing of a common seal to render them valid. Today,
however, deeds are instruments in solemn form which require the author's
signature and a number of attesting witnesses. A deed is the legal document conveying
title to a property.
deed-in-lieu
A deed given by a borrower to the lender to satisfy a debt and avoid
foreclosure. Also called a "voluntary conveyance."
deed of trust
In real estate, a trust
deed or deed of trust,
is a document wherein specific financial interest in the title to
real property
is held by a trustee, which holds it as security for a loan
default
Failure to make loan payments on a timely basis or to comply with other requirements of a
mortgage.
delinquency
Failure to make mortgage payments when due.
deposit
A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See
earnest money deposit.
depreciation
A decline in the value of property because of physical or economic changes such as wear and tear; the opposite of appreciation.
discount points
Amounts paid to the lender at origination to lower the rate on the face of the note. See
point.
down payment
A down payment is the part of the purchase price of a property that the buyer pays in cash and does not finance with a home loan.
Draw Period
The time period in which the borrower may access and use a line of credit.
due-on-sale provision
A provision in a mortgage home loan that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the loan.
due-on-transfer provision
This terminology is usually used for second mortgages. See due-on-sale provision.
