bankruptcy that requires all assets be liquidated in exchange for the discharge of debts, other than debts the individual debtor chooses to reaffirm and certain obligations that cannot be discharged as a matter of law. Closing: When selling a house, the process of transferring ownership from the seller to you, the disbursement of funds from you and the lender to the seller, and the signing of all the documents associated with the sale and the loan. On a refinance, there is no transfer of ownership, but the closing includes repayment of the previous lender. Co-Borrowers: One or more persons who have signed a loan note, and are equally responsible for repaying the loan. Collections: The efforts a lender takes to collect past due payments. Convertible ARM: e ARM: An Adjustable Rate Mortgage loan that can be converted into a Fixed-Rate Mortgage during a certain time period. Debt-to-Income: A comparison or ratio of gross income to housing and other expenses (or debts) the homeowner owes. Deed: A document that legally transfers ownership of property from one person to another. The deed is recorded on public record with the property description and the owner’s signature. Also known as the title. Deed-in-Lieu of Foreclosure: The process by which a homeowner may voluntarily transfer the deed to a home to the servicer when payments cannot be made. Deferred Payments: Loan payments that are authorized to be postponed as part of a workout process to avoid foreclosure.
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