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Real Estate - A deposit in the form of cash or a note given to a seller by a buyer as good faith assurance that the buyer intends to go through with the purchase of a property.
Ginnie Mae - Cite This Source - This Definition - Browse Related Terms: Acceptance, Contingency, Counter-offer, Deposit (Earnest Money), Earnest Money Deposit, escape clause, Homeowner's Warranty (HOW), Listing Agreement, Offer, Purchase and Sale Agreement, Ratified Sales Contract, Right of First Refusal, Walkthrough
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Real Estate - Money put down by a potential buyer to show that they are serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. During the contingency period the money may be returned to the buyer if the contingencies are not met to the buyer's satisfaction.
US Department of Housing and Urban Development - Cite This Source - This Definition - The deposit to show that you're committed to buying the home. The deposit will not be refunded to you after the seller accepts your offer, unless one of the sales contract contingencies is not fulfilled.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Acceptance, Contingency, Counter-offer, Deposit (Earnest Money), earnest money, escape clause, Homeowner's Warranty (HOW), Listing Agreement, Offer, Purchase and Sale Agreement, Ratified Sales Contract, Right of First Refusal, Walkthrough
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Real Estate - Anything that affects title to a property, such as loans, leases, easements, or restrictions.
US Department of Housing and Urban Development - Cite This Source - This Definition - Any claim on a property, such as a lien, mortgage or easement.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Abstract of title, certificate of title, Chain of Title, Clear Title, Cloud, Cloud On The Title, Co-borrower, Free and clear, Title 1, Title Company, Title Defect, Title search, Transfer Tax
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Real Estate - A federal law requiring lenders to make credit available equally without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
US Department of Housing and Urban Development - Cite This Source - This Definition - A federal law that requires lenders to make credit equally available without regard to the applicant's race, color, religion, national origin, age, sex, or marital status; the fact that all or part of the applicant's income is derived from a public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Equal Credit Opportunity Act, Fair Housing Act, Truth in Lending Act (TILA)
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Real Estate - The market value of real property, less the amount of existing liens. Equity build-up is the reduction of principal on a mortgage or deed of trust by periodic payments, which increases (builds-up) the difference (equity) between the property value and amount of the lien.
U.S. Census Bureau - Cite This Source - This Definition - An owner's financial interest in a property; calculated by subtracting the amount still owed on the mortgage loon(s)from the fair market value of the property.
US Department of Housing and Urban Development - Cite This Source - This Definition - The value of a property beyond any liens against it. Also referred to as owner's interest.
Ginnie Mae - Cite This Source - This Definition - In housing markets, equity is the difference between the fair market value of the home and the outstanding balance on your mortgage plus any outstanding home equity loans. In vehicle leasing markets, equity is the positive difference between the trade-in or market value of your vehicle and the loan payoff amount.
The Federal Reserve Board - Cite This Source - This Definition - The value in your home above the total amount of the liens against your home. If you owe $100,000 on your house but it is worth $130,000, you have $30,000 of equity.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Appraisal, appraisal fee, Appraised Value, Appraiser, Comparables, Comparative Market Analysis (COMPS), Eminent Domain, Fair market value, market value, property appraisal
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Real Estate - A provision in a purchase contract that allows either party to cancel part or the entire contract if the other does not respond to changes to the sale within a set period. The most common use of the escape clause is if the buyer makes the purchase offer contingent on the sale of another house.
US Department of Housing and Urban Development - Cite This Source - This Definition - A provision allowing one party or more to cancel all or part of the contract if certain events fail to happen, such as the ability of the buyer to obtain financing within a specified period.
Ginnie Mae - Cite This Source - This Definition - Browse Related Terms: Acceptance, Contingency, Counter-offer, Deposit (Earnest Money), earnest money, Earnest Money Deposit, Homeowner's Warranty (HOW), Listing Agreement, Offer, Purchase and Sale Agreement, Ratified Sales Contract, Right of First Refusal, Walkthrough
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Real Estate - Funds held in an account to be used by the lender to pay for home insurance and property taxes. The funds may also be held by a third party until contractual conditions are met and then paid out.
US Department of Housing and Urban Development - Cite This Source - This Definition - Money placed with a third party for safekeeping either for final closing on a property or for payment of taxes and insurance throughout the year.
Ginnie Mae - Cite This Source - This Definition - The holding of money or documents by a neutral third party before closing on a property. It can also be an account held by the lender (or servicer) into which a homeowner pays money for taxes and insurance.
The Federal Reserve Board - Cite This Source - This Definition - 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.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Buydown, Co-Signed Account, Escrow Account, Escrow analysis, Impound account, Individual retirement account (IRA), inflation, Lease Purchase (Lease Option), Servicer, Servicing, Trust account, Vested
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Real Estate - Account held by a lender for payment of taxes, insurance, or other periodic debts against real property. The property owner pays a portion of the yearly taxes, insurance, etc., with each monthly payment. The lender pays the tax bill from the accumulated funds. Also called "impound account" or "trust account."
U.S. Census Bureau - Cite This Source - This Definition - A separate account into which the lender puts a portion of each monthly mortgage payment; an escrow account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance, etc.
US Department of Housing and Urban Development - Cite This Source - This Definition - An account that a mortgage servicer establishes on behalf of a borrower to pay taxes, insurance premiums, or other charges when they are due. Sometimes referred to as an "impound" or "reserve" account.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Buydown, Co-Signed Account, Escrow, Escrow analysis, Impound account, Individual retirement account (IRA), inflation, Lease Purchase (Lease Option), Servicer, Servicing, Trust account, Vested