A gradual increase in mortgage debt that occurs when the
monthly payment is not large enough to cover the entire
principal and interest due. The amount of the shortfall
is added to the remaining balance to create "negative"
The income that remains for an investment property after
the monthly operating income is reduced by the monthly housing
expense, which includes principal, interest, taxes, and
insurance (PITI) for the mortgage, homeowners' association
dues, leasehold payments, and subordinate financing payments.
The value of all of a person's assets, including cash, minus
A refinance transaction in which the new mortgage amount
is limited to the sum of the remaining balance of the existing
first mortgage, closing costs (including prepaid items),
points, the amount required to satisfy any mortgage liens
that are more than one year old (if the borrower chooses
to satisfy them), and other funds for the borrower's use
(as long as the amount does not exceed 1 percent of the
principal amount of the new mortgage).
An asset that cannot easily be converted into cash.
A legal document that obligates a borrower to repay a mortgage
loan at a stated interest rate during a specified period
The interest rate stated on a mortgage note.
A formal written notice to a borrower that a default has
occurred and that legal action may be taken.