Category: Glossary

Home Equity Line of Credit | A loan that is secured by the owners property which can be repaid and borrowed again at the owners convenience.

Habendum Clause | Meaning “to have and to hold” which defines the quantity of the estate that is transferred to the new owner of land.

Grantor | The person (seller) who grants title to another person (buyer).

Grantee | The person to whom the title of the property is granted.

Grace Period | A period of days during which a debtor may cure a delinquency without penalty (before triggering a late charge, a foreclosure or an acceleration of the balance due).

Good Faith Estimate | Institutional lender estimates the costs a borrower will incur, including inspection fees and loan-processing charges.

Garnishment | A statutory proceeding whereby person’s property, money, credits in possession or under the control of, or owing by, another are applied to payment of the former’s debt to third person by proper statutory process against debtor and garnishee.

Foreclosure | A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. The foreclosure procedure brings the rights of all parties to a conclusion and passes the title in the mortgaged property to either the holder of the mortgage or a third party who may purchase the realty at the foreclosure sale, free of all encumbrances affecting the property subsequent to the mortgage.

First Mortgage | A mortgage that is in first position and has priority as a lien over all other mortgages.

FHA Loans | A loan program offering low-rate mortgages to buyers who are willing to make a down payment as small as 3 percent.