An insurance policy that will make loan payments or pay off a loan under specific conditions. An assessment of the historical credit worthiness of an individual. Deed of Trust A deed that secures repayment of a debt held by a trustee until the note is paid. In some states, this function is filled by a mortgage. Default Failure to meet an obligation.
Mortgage default occurs when a payment remains unpaid after the grace period.
Depreciation A decrease in the value of an asset due to any cause, whether temporary or permanent. Opposite of appreciation. Earnest Money A deposit made by the buyer to bind the real estate purchase agreement. The buyer s ownership in a property. The difference between the market value of the property and the debt against it.