Glossary

DEBT: This is any obligation to repay some amount owed. This may or may not be monetary.

DEBT EQUITY RATIO: Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt. This is the ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home.

DEED: A written and notarized document indicating the ownership of a property.

DEED-IN-LIEU (OF FORECLOSURE): Often used to avoid credit-damaging foreclosure procedures, this is a document given by a borrower to a lender, transferring title of the property.

DEED OF TRUST: Often used in mortgage transactions, this is a document which transfers title in a property to a trustee, whose obligations and powers are stipulated in writing.

DEED OF RECONVEYANCE: This is a document used to transfer ownership of a property from a Trustee back to a borrower who has fulfilled the obligations of a mortgage.

DEED OF RELEASE: A document used for the dismissal of a lien or other claim on a property.

DEED OF SURRENDER: When a document used to surrender any claim a person has to a property.

DEFAULT: When a borrower has failed to meet the obligations of a loan or mortgage.

DELINQUENCY: When a borrower has failed to meet payment obligations on time.

DEPOSIT: This is when cash, check, cashiers check or wired funds are given along with an offer to purchase property, also called EARNEST MONEY DEPOSIT.

DEPRECIATION: When the natural decline in property value is due to market forces or depletion of resources.

DETACHED SINGLE-FAMILY HOME: A single building intended to serve as a home for one family.

DISCOUNT POINTS: These are the points paid in addition to the loan origination fee to get a lower interest rate. One point is equal to one percent of the loan amount.

DISTRESSED PROPERTY: When a mortgaged property has been foreclosed on.

DUE-ON-SALE PROVISION: This is a clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the property. Almost every lender includes this in the note.

DUPLEX: This is single-building which is divided and provides two units which serve as homes to two families.

DWELLING: When a house or other building which serves as a home.

DOWN PAYMENT: The amount of money paid in cash for a property, with the intent to mortgage the remaining amount due.