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Terms of Foreclosure and Their Definitions!The Terms of Foreclosure and their definitions will help you understand the foreclosure process and better handle the situation you are in or are about to experience. Get a step ahead of the lenders by understanding what's going on and how to deal with it. Most people enter a foreclosure blind, not knowing anything about the process. By that time, it's almost too late to figure out what's going on and you are susceptible to scams and expensive legal fees when all you have to do is ask for help. The first step in learning the process of foreclosure is to learn the terms of foreclosure. We will keep it as basic as we can so you can understand all of the terms of foreclosure you are learning. Terms of Foreclosure A B C D E F G H I-K L M N-P Q-R S T U-Z
Terms of Foreclosure Beginning With "E" Earnest Money Deposit An Earnest Money Deposit is a Good Faith deposit made as a down payment by a purchaser of real estate. Easement An easement is a specific right-of-way that allows someone else to use or cross over another person's property for certain purposes, such as power lines or water mains. This form must be completed by both property owners. If a property with an easement is sold, the new property owners must also agree with the easement. Encroachment Encroachment is something that illegally invades or enters a property diminishing its width or area. It can also mean that something overlaps or extends over, shrinking its overall space. Encumbrance An Encumbrance is anything such as a mortgage, tax, or judgment lien, an easement, a restriction on the use of the land or an outstanding dower right that may diminish the value or use and enjoyment of a property. Equity Equity is the amount of money left over after any mortgages or liens are subtracted from your property's fair market value. It can be used in several ways, such as take cash out to consolidate bills, use as a down payment for another mortgage, or any other investment or purchase. Equity Right of Redemption Equity Right of Redemption is the property owner's right to avoid foreclosure action by paying off the debts, interest, and fees that have accumulated on a property. It can also be the right of the mortgagor to pay what is owed to the mortgagee and take the property. Escrow Account An Escrow Account is a bank account or money holding account generally held in the name of the person making the deposit and an escrow agent who's in charge of the account. The money that is deposited in an escrow account is returnable to the person making the deposit or is paid to a third person (such as taxes and insurance for your mortgage) when due. Utilizing an escrow account helps you avoid missing tax and insurance payments. Estate An Estate is the combined total of all assets a person has when he/she dies, including real estate. Estoppels Certificate A certificate in which a borrower certifies the amount owed on a mortgage loan and the rate of interest. It is also a document by which a tenant certifies to a lender that all rental amounts due and owing are current, and that their landlord is in compliance with all of the terms and conditions of the lease. This prevents the debtor from claiming that the balance due differs from the amount stated in any way. Eviction Eviction is the act of removing a person and their possessions from land or rental property that he/she has held or leased. This usually occurs if a person doesn't pay rent that is due or past due or if court ordered. Terms of Foreclosure Beginning With "F"
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