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Mortgage
Terms
E
Earnest Money
The deposit money given to the seller or his agent by the potential buyer
upon the signing of the agreement of sale to show that he is serious about
buying the house. If the sale goes through, the earnest money is applied
against the down payment. If the sale does not go through, the earnest
money will be forfeited or lost unless the binder or offer to purchase
expressly provides that it is refundable.
Easement Rights
A right-of-way granted to a person or company authorizing access to or
over the owner's land. An electric company obtaining a right-of-way across
private property is a common example.
Effective Age
An appraiser’s estimate of the physical condition of a building.
The actual age of a building may be shorter or longer than its effective
age. Effective gross income Normal annual income including overtime that
is regular or guaranteed. The income may be from more than one source.
Salary is generally the principal source, but other income may qualify
if it is significant and stable.
Eminent Domain
The right of a government to take private property for public use upon
payment of its fair market value. Eminent domain is the basis for condemnation
proceedings.
Employer-Assisted Housing
A special Fannie Mae housing initiative that offers several different
ways for employers to work with local lenders to develop plans to assist
their employees in purchasing homes.
Encroachment
An obstruction, building, or part of a building that intrudes beyond a
legal boundary onto neighboring private or public land, or a building
extending beyond the building line.
Encumbrance
A legal right or interest in land that affects a good or clear title,
and diminishes the land's value. It can take numerous forms, such as zoning
ordinances, easement rights, claims, mortgages, liens, charges, a pending
legal action, unpaid taxes, or restrictive covenants. An encumbrance does
not legally prevent transfer of the property to another. A title search
is all that is usually done to reveal the existence of such encumbrances,
and it is up to the buyer to determine whether he wants to purchase with
the encumbrance, or what can be done to remove it.
Endorser
A person who signs ownership interest over to another party. Contrast
with co-maker.
Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit
equally available without discrimination based on race, color, religion,
national origin, age, sex, marital status, or receipt of income from public
assistance programs.
Equity
The difference between the market value of a property and the homeowner's
outstanding mortgage balance.
Equity Loan
A loan based on the borrower's equity in his or her home. Prior to closing;
also, an account held by the lender into which a homeowner pays money
for taxes and insurance.
Escrow
An item of value, money, or documents deposited with a third party to
be delivered upon the fulfillment of a condition.
Escrow Account
The account in which a mortgage servicer holds the borrower’s escrow
payments prior to pahying property expenses.
Escrow Analysis.
The periodic examination of escrow accounts to determine if current monthly
deposits will provide sufficient funds to pay taxes, insurance, and other
bills when due.
Escrow Collections
Funds collected by the servicer and set aside in an escrow account to
pay the borrower’s property taxes, mortgage insurance, and hazard
insurance. Escrow disbursements. The use of escrow funds to pay real estate
taxes, hazard insurance, mortgage insurance, and other property expenses
as they become due.
Escrow Disbursements
The use of escrow funds to pay real estate taxes, hazard insurance, mortgage
insurance, and other property expenses as they become due.
Escrow Payment
The portion of a mortgagor’s monthly payment that is held by the
servicer to pay for taxes, hazard insurance, mortgage insurance, lease
payments, and other items as they become due. Estate. The ownership interest
of an individual in real property. The sum total of all the real property
and personal property owned by an individual at time of death.
Estate
The ownership interest of an individual in real property. The sum total
of all the real property and personal property owned by an individual
at time of death.
Eviction
The lawful expulsion of an occupant from real property.
Examination of Title
The report on the title of a property from the public records or an abstract
of the title.
Exclusive Listing
A written contract that gives a licensed real estate agent the exclusive
right to sell a property for a specified time, but reserving the owner’s
right to sell the property alone without the payment of a commission.
Executor
A person named in a will to administer an estate
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