mortgage payments.
Foreclosure Prevention: Steps by which the servicer works with the homeowner to find a permanent solution to resolve an existing or impending loan delinquency. Private corporations created by the U.S. Government to reduce borrowing costs. For example, Fannie Mae and Freddie Mac are GSEs. Government-Sponsored Enterprises s (GSEs): Hazard Insurance: Insurance that is generally required under mortgage contracts to pay for loss or damage to a person’s home or property. Home Equity Line of Credit (HELOC): A way of borrowing money against the equity in one’s home to pay for things such as home repairs, college education, or other personal uses. Housing Expense: The sum of a homeowner’s mortgage payment, hazard insurance, property taxes, and homeowner association fees. Interest-Only Mortgage: A mortgage in which the homeowner pays only the interest and none of the outstanding principal balance on a loan for a specified amount of time. Investment Property: A property not considered to be a primary residence that is purchased in order to generate income, profit from appreciation, or to take advantage of certain tax benefits. Lien: The lender’s right to claim the homeowner’s property in the event the homeowner defaults. If there is more than one lien, the claim of the lender holding the first lien will be satisfied before the claim of the lender holding the second lien, which in turn will be satisfied before the claim of a lender holding a third lien, etc.
90
Powered by FlippingBook