The term 'Accelerate (A Debt)' refers to invoking the acceleration clause in a loan agreement, making the full amount of the loan debt due immediately upon a borrower's default or other specified triggers.
Amortization is the process of gradually paying off a debt over time through regular payments, which include both principal and interest. This structured repayment schedule is commonly used in loans such as mortgages, car loans, and personal loans.
Amortization Term refers to the period over which a loan or debt is scheduled to be paid off through periodic payments. The full amortization term dictates the timeline within which the principal and interest are settled.
Annual Debt Service refers to the total annual amount of principal and interest payments required to repay a loan.
Call provisions are clauses in a loan agreement that grant the lender the right to accelerate the debt and demand full repayment upon occurrence of a specific event or agreed-upon date.
A constant payment loan is a type of loan structured with equal periodic payments that ensure the loan is paid off by the end of its term. This type of loan is often used in mortgage financing.
A 'Cram Down' refers to a situation in bankruptcy proceedings where a bankruptcy court forces creditors to accept terms of repayment that are less favorable than the creditors might have wanted. This is commonly applied to various classes of debt to reduce the amount due and reconfigure the debt structure to favor the debtor's repayment capabilities.
A Credit Rating (Report) is an evaluation of an individual's or business's capacity and history of debt repayment. It provides creditors with an understanding of a borrower's reliability, aiding in the decision-making process for loans and credit.
In the context of real estate, a debtor is a person or entity obligated to repay a debt. The debtor obtains a loan or other form of credit, typically used to purchase property, and is legally responsible for repaying the borrowed amount according to the agreed terms. The opposite of a debtor is a creditor, who provides the loan or credit.
A legal ruling issued by a court that determines the outstanding mortgage amount and mandates the sale of the property to pay off the debt.
Joint and several liability is an obligation that allows a creditor to demand full repayment from any or all of those who have borrowed. Each borrower is liable for the entire debt, not just a prorated share.
The term 'liable' refers to being responsible or obligated, especially in the context of financial and legal commitments within the realm of real estate. It often indicates a party that is legally bound to uphold agreements or settlements.
The Loan Constant, also known as the Mortgage Constant, is used to analyze the burden of debt repayment on a property and measure its ability to generate earnings sufficient to cover mortgage payments.
The period of redemption is a specific timeframe within which a borrower can reclaim their foreclosed property by paying off the total debt owed.
In real estate, 'Priority' refers to the order in which creditors will be repaid in the event of a foreclosure. This can significantly impact which stakeholders are paid first and who might not receive any repayment if funds are exhausted.
The remaining balance, also referred to as the outstanding balance, is the amount of loan principal that has not yet been repaid, plus any accrued interest or fees.
The statutory right of redemption allows a mortgagor to redeem their property within a specified time after a foreclosure sale, as provided by state law.
