| Earnest Money Deposit |
Money paid by the purchaser of real estate when the buyer and seller
reach an oral agreement for the sale of the property to show that the
buyer's offer is being made in "good faith."
|
| Easement |
Right to the limited use or enjoyment of land held by another. An
easement is an interest in land to enable sewer or other utilities lines
to be laid, or to allow for access to a property.
|
| Economic Depreciation |
Loss of value to real estate due to changes outside the particular
property (e.g., a decline in the neighborhood or change in zoning).
|
| Economic Life |
Estimated period of time during which a property can be utilized
profitably.
|
| Effective Age |
For purposes of appraisal, the physical age given to a
building based on its present condition, which may be shorter or longer
than its actual age.
|
| EFFECTIVE DATE |
This is the date a new mortgage payment is effective—the month following
the rate change date.
|
| Effective Gross Income |
Income that is verifiable and likely to continue during the first five
(5) years of the term of the mortgage.
|
| Eminent Domain |
Right of government bodies, public utilities, and public service
corporations to take private property for public use (e.g., schools,
roads, etc.) on payment of its fair market value.
|
| Encroachment |
Improvement that illegally violates another's property. Such as a wall,
fence or building, that extends onto the property of another.
|
| Enhancement |
Amendment that may apply to specific loan programs (e.g., the Spot
Relocation enhancement that may be utilized in coordination with
non-conforming and conforming loan programs).
|
| Encumbrance |
Anything that affects or limits the fee simple title to property, such
as mortgages, leases, easements, or restrictions.
|
| ENDORSE |
The act of a payee or holder of a note, bill, check or other negotiable
instrument, of assigning and transferring said instrument to another by
signing the back of the instrument, with or without qualifications.
|
| ENDORSEMENT |
An addition to a title insurance policy that adds or subtracts coverage.
|
| Entitlement |
Amount of guaranty available to an eligible veteran.
|
| Equal Credit Opportunity Act (ECOA)
|
Federal law passed in 1974 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.
|
| EQUITABLE INTEREST |
An ownership interest in a property that is demonstrated by actions such
as the payment of the current mortgage, property taxes or property
insurance rather than by legal ownership.
|
| Equity |
Net ownership, the difference between fair market value and current
indebtedness. Also known as the owner's interest.
|
| EQUITY LINE OF CREDIT (HELOC) |
A combination of a line of credit and equity loan secured by real
property. A maximum loan amount is established based on credit and
equity. A mortgage is recorded against the potential borrower’s property
for said maximum loan amount. The potential borrower has the right to
borrow, as needed, up to the amount of the credit line.
|
| Errors and Omissions Coverage |
Indirect loss insurance that covers
losses due to an error or neglect on the part of an employee to whom a
specific responsibility has been assigned.
|
| ESCROW |
Delivery of something of value by a grantor to a 3rd party for delivery
to the grantee upon the happening of a contingent event. In some states,
all instruments necessary to the sale are delivered to a 3rd party, with
instructions as to their use.
|
| Escrow Agent |
Person or organization with fiduciary responsibility to
both the buyer and seller (or lender and borrower) to see that the terms
of the purchase/sale (or loan) are carried out. Also known as escrow
company and escrow depository.
|
| Escrow Deposit Account |
Trust account that holds funds allocated for
the monthly payment of real estate taxes, hazard insurance, mortgage
insurance, lease payments, and other items. Also known as an impound
account in some areas.
|
| ESCROW INSTRUCTIONS |
For purchase transactions, instructions signed by both buyer and seller,
which enable the escrow agent to carry out the procedures necessary to
transfer real property, a business or other assignable interest.
|
| Escrow Payment |
Portion of a mortgagor's monthly payments held by the lender or servicer
to pay for taxes, hazard insurance, mortgage insurance, lease payments,
and other items as they become due. Also known as impounds or reserves
in some states.
|
| Estate |
Ownership interest an individual has in real property. Sum total of all
the real and personal property owned by an individual at the time of
death.
|
| Estoppel Certificate |
Written statement setting forth certain facts about a piece of real
estate, such as the precise amount of indebtedness remaining.
|
| Et Uxor
|
Legal term meaning "and wife." sometimes abbreviated as et ux.
|
| EXCEPTIONS TO GUIDELINES
|
The consideration of approving a loan having characteristics that don’t
fit into Lenders Guide Lines when it makes sense to do so.
|
| EXCEPTIONS TO TITLE |
Claims against the property as of the date of the title report.
|
| Execution |
Judicial order directing an officer of the court to enforce a judgment
against the property or person of the judgment to satisfy the judgment.
|
| Executor |
Person named in a will to administer an estate. The court appoints an
administrator if no executor is named. Feminine form is executrix.
|
| EXPERIAN (EXP)
|
The name of a national credit bureau.
|
| External Depreciation (Economic Obsolescence) |
Loss of value to real
estate due to changes outside the particular property (e.g., economic
factors or environmental changes).
|
| EXTERNAL OBSOLESCENCE |
| Any influence negatively affecting
a property’s value that falls outside of the specific property site. An
example of this would be a property located under an airport flight
pattern. |
