Loan-to-Value (LTV) Ratio: In real estate lending, the outstanding principal amount of the loan divided by the appraised value of the property underlying the loan. Monthly Gross Income: The total income of all homeowners who sign a mortgage before any taxes or other deductions are made. Mortgage: A legal document that pledges property to a lender as security for the repayment of a loan. The term is sometimes also used to refer to the loan itself. Mortgage Insurance (MI): e (MI): Insurance that protects lenders against losses caused by a homeowner’s default on a mortgage loan. MI typically is required if the homeowner’s down payment is less than 20% of the purchase price. Mortgage Modification: A change in the terms of a loan, usually the interest rate and/or term, in response to the homeowner’s inability to make the payments under the existing contract. Mortgage Payment: The amount of money paid on a monthly basis for principal, interest, property taxes, hazard insurance and homeowner’s association fees, if applicable. Negative Equity: The condition of being underwater, or owing more on the property than the property is worth. PITIA: Shorthand for principal, interest, taxes, insurance, and, if applicable, association fees which are the components of the housing expense. Pre-foreclosure Sale: Sale in which the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Also referred to
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