Capital structure refers to the composition of capital invested in a property, reflecting the interests of those who contributed both debt and equity capital.
In real estate, collateral refers to property or assets that a borrower offers to a lender as security for a loan. It reduces the lender’s risk by providing a way to recoup the loan amount if the borrower defaults.
A creditor is an entity or person to whom money is owed by a debtor. In a strict legal sense, a creditor is one who extends credit to another for money or other property. More generally, a creditor is someone who has a legal right to demand and recover from another entity a sum of money on any account.
Debt is an obligation that requires one party, the borrower or debtor, to pay money or other agreed-upon value to another party, the lender or creditor.
The Debt/Equity Ratio is a measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.
In mortgage finance, a deficiency refers to the shortfall of funds recovered through the sale of a property that had secured a foreclosed loan compared to the total debt owed. This typically includes the unpaid loan balance, accrued interest, foreclosure expenses, and any damages incurred by the lender.
In real estate and finance, 'FLOAT' refers to the period between a transaction (such as a deposit or withdrawal) and the time it's credited or deducted, the difference between a variable interest rate and its pegged index, and the act of incurring a debt through loans or bonds.
A loan contract is a document that acknowledges the debt of the borrower and establishes the terms by which that debt is to be discharged. It outlines the payment schedule, prepayment conditions, and what constitutes a default. In cases of mortgage loans, it also includes pledges of real property as collateral.
A mortgagee is an entity or individual who lends money to a borrower to purchase real estate and holds a lien on the property or title as security for the debt.
The amount owed on a debt, whether it is the original face amount or the remaining unpaid debt on a loan that has been partially amortized.
Repossession refers to the forced retrieval of property by a lender or lessor when a borrower or lessee defaults on contractual obligations, such as missing payments. This legal process primarily involves reclaiming collateral used to secure a loan or leased items and is often juxtaposed with the term foreclosure.
A real estate term used to describe a situation where the market value of a property is less than the outstanding balance on the mortgage. This condition can complicate selling the property or refinancing the mortgage.
An unsecured loan is a debt not protected by any collateral or security, meaning the lender relies solely on the borrower's creditworthiness and promise to repay.
