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.
A charge-off in real estate refers to the portion of principal and interest recognized as a loss when a loan is deemed uncollectible. Lenders resort to charge-offs when they perceive that further collection efforts on a delinquent account will not be fruitful.
A deed in lieu of foreclosure is a legal process where a borrower voluntarily transfers ownership of the property to the lender to avoid foreclosure proceedings.
Delinquency Rate is a critical metric in real estate finance, used to gauge the risk of loan defaults within a portfolio. It measures the percentage of loans that are past due for a specified period, typically 90 days or more.
A policy of restraint in taking legal action to remedy a default or breach of contract, generally in the hope that the default will be cured, given additional time.
Insurance (Mortgage) is a service, generally purchased by a borrower, that indemnifies the lender in case of foreclosure of the loan. Indemnification is generally limited to losses suffered by the lender in the foreclosure process.
States whose laws give a lien on property to secure debt. This is contrasted with title-theory states where the lender holds the title. In lien-theory states, borrowers have the right to use and enjoy the property unless they default, at which point lenders may foreclose.
Mortgage Guarantee Insurance Company (MGIC) is a private institution that provides insurance to lenders, ensuring loan repayment in case of default or foreclosure by the borrower.
A mortgage lien is an encumbrance on a property that is used to secure a loan. The holder of the lien has a claim to the property in case of loan default, making it a critical aspect of real estate financing.
A decision by the Department of Veterans Affairs (VA) to pay the guaranteed amount to the lender rather than acquiring the property in foreclosure when a guaranteed loan goes into default. This typically occurs when the property's value has declined significantly.
A nonperforming loan (NPL) is a loan for which the borrower is not making interest payments or repaying any principal. This typically occurs when payments are more than 90 days past due or the maturity date has already passed without full repayment.
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.
