Category: Glossary

Encroachment | A fixture that illegally intrudes into or invades the property or encloses a portion of it, diminishing its width or area.

Easement | A right of way allowing someone to cross over another’s property for certain purposes, such as power lines or water mains.

Earnest Money Deposit | A deposit made by a purchaser of real estate used as a down payment as evidence of good faith.

Due Diligence | Such a measure of prudence, activity, or assiduity, as is properly to be expected from a reasonable and prudent man under the particular circumstance.

Due-on-Sale Clause | A clause in a mortgage which requires that the mortgage be paid out in full upon the sale of the property.

Disclosure Statement | Document disclosing the terms of a loan.

Department of Veterans Affairs (VA) | An independent federal agency which oversees programs for military veterans, including loan and mortgage programs. This agency allows most veterans to purchase a house without a down payment.

Department of Housing and Urban Development (HUD) | A federal department that focuses on programs regarding housing and renewal of city communities.

Demand Letter | Also known as a Breach Letter or Notice of Intent to Foreclose. Notice to the borrower that he/she is in “breach” of the terms of the Note and advising of the right to “cure” the default.

Delinquency | A condition when the payment is being late but not yet in default.