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Calculation of gross income minus debt load. Deductions include outstanding loans (i.e., car loans, personal loans, credit cards, etc.) and other recurring expenses.
A written document that shows ownership of the property.
DEED IN LIEU OF FORECLOSURE
An agreement to voluntarily transfer the property title to the loan servicer in exchange for cancellation of the remainder of the debt.
DEED OF TRUST
A type of security instrument conveying title in trust to a third party for a particular property in order to secure payment of a note.
Failure to meet legal obligations in a contract, including failure to make payments on a loan. A mortgage is generally considered to be in default when a payment is 30 days past due.
Discloses whether the loan’s remaining principal and interest amount is due and payable on demand.
A loan payment that is a least one month overdue, but which has not yet been declared by the lender to be in default.
A cash deposit made by a potential buyer to show that the offer is serious.
A decline in the value of property.
Down payment is the difference between the sales price and the loan amount. Lenders set specific requirements for this amount, and the amount may differ based on the type of financing the borrower is obtaining.