earnest
money deposit
A deposit
made by the potential home buyer to show that he or she
is serious about buying the house.
easement
A right of way giving persons other than the owner access
to or over a property.
effective
age
An appraiser’s estimate of the physical condition of a building.
The actual age of a building may be shorter or longer than
its effective age.
effective
gross income
Normal annual income including overtime that is regular
or guaranteed. The income may be from more than one source.
Salary is generally the principal source, but other income
may qualify if it is significant and stable.
eminent
domain
The right of a government to take private property for public
use upon payment of its fair market value. Eminent domain
is the basis for condemnation proceedings.
Employer-assisted
housing
A special Fannie Mae housing initiative that offers several
different ways for employers to work with local lenders
to develop plans to assist their employees in purchasing
homes.
encroachment
An improvement that intrudes illegally on another’s property.
encumbrance
Anything that affects or limits the fee simple title to
a property, such as mortgages, leases, easements, or restrictions.
endorser
A person who signs ownership interest over to another party.
Contrast with co-maker.
Equal
Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors
to make credit equally available without discrimination
based on race, color, religion, national origin, age, sex,
marital status, or receipt of income from public assistance
programs.
equity
A homeowner's financial interest in a property. Equity is
the difference between the fair market value of the property
and the amount still owed on its mortgage.
escrow
An item of value, money, or documents deposited with a third
party to be delivered upon the fulfillment of a condition.
For example, the deposit by a borrower with the lender of
funds to pay taxes and insurance premiums when they become
due, or the deposit of funds or documents with an attorney
or escrow agent to be disbursed upon the closing of a sale
of real estate.
escrow
account
The account in which a mortgage servicer holds the borrower’s
escrow payments prior to paying property expenses.
escrow
analysis
The periodic examination of escrow accounts to determine
if current monthly deposits will provide sufficient funds
to pay taxes, insurance, and other bills when due.
escrow
collections
Funds collected by the servicer and set aside in an escrow
account to pay the borrower’s property taxes, mortgage insurance,
and hazard insurance.
escrow
disbursements
The use of escrow funds to pay real estate taxes, hazard
insurance, mortgage insurance, and other property expenses
as they become due.
escrow
payment
The portion of a mortgagor’s monthly payment that is held
by the servicer to pay for taxes, hazard insurance, mortgage
insurance, lease payments, and other items as they become
due. Known as "impounds" or "reserves" in some states.
estate
The ownership interest of an individual in real property.
The sum total of all the real property and personal property
owned by an individual at time of death.
eviction
The lawful expulsion of an occupant from real property.
examination
of title
The report on the title of a property from the public records
or an abstract of the title.
exclusive
listing
A written contract that gives a licensed real estate agent
the exclusive right to sell a property for a specified time,
but reserving the owner’s right to sell the property alone
without the payment of a commission.
executor
A person named in a will to administer an estate. The court
will appoint an administrator if no executor is named. "Executrix"
is the feminine form.
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