A balloon payment is the final and often significantly large payment on a loan, typically required after a series of smaller installment payments. It clears the remaining debt owed on the loan.
A Certificate of Satisfaction is a legal document that indicates the fulfillment of the terms and obligations under a lien, mortgage, or loan agreement. It is often required to clear any encumbrances against a property, signifying that the associated debt or obligation has been satisfied in full.
A decree issued by a court determining that one individual is indebted to another and specifying the amount owed.
A short sale is a financial arrangement where a mortgagor settles their outstanding mortgage debt with a payment that is less than the principal balance owed. This process helps avoid foreclosure and can be used as an alternative solution for struggling homeowners.
A specific lien is a claim on a specific piece of property used as collateral for a loan. This differs from a general lien, which is a claim on all assets of an individual.
