chicago real estate glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Money owed from one person or institution to another person or institution.
The percentage of gross monthly income that goes toward paying for your monthly housing expense, alimony, child support, car payments and other installment debts, and payments on revolving or open-ended accounts such as credit cards.
The legal document transferring ownership or title to a property
Deed-in-Lieu of Foreclosure:
The transfer of title from a borrower to the lender to satisfy the mortgage debt and avoid foreclosure. Also called a "voluntary conveyance."
Deed of Trust:
A legal document in which the borrower transfers the title to a 3rd party (trustee) to hold as security for the lender. When the loan is paid in full the trustee transfers title back to the borrower. If the borrower defaults on the loan the trustee will sell the property and pay the lender the mortgage debt.
Failure to fulfill a legal obligation. A default includes failure to pay on a financial obligation, but may also be a failure to perform some action or service that is non-monetary. For example, when leasing a car, the lessee is usually required to properly maintain the car.
Failure to make a payment when it is due. The condition of a loan when a scheduled payment has not been received by the due date, but generally used to refer to a loan for which payment is 30 or more days past due.
A decline in the value of a house due to changing market conditions or lack of upkeep on a home.
A fee paid by the borrower at closing to reduce the interest rate. A point equals 1 percent of the loan amount.
A portion of the price of a home, usually between 3-20%, not borrowed and paid up front in cash.
A provision in a mortgage that allows the lender to demand repayment in full of the outstanding balance if the property securing the mortgage is sold.
Prepared by and used with the permission of the FTC.