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Acceleration |
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The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgager (borrower), or by using the right vested in the Due-on-Sale Clause. |
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Adequate Protection Order |
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Forces trustees to release post petition payments being held prior to the chapter 13 confirmation hearing. |
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Adjustment Interval |
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On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years, depending on the index. |
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Adverse Possession |
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A claim made against land titled in another person based on open, notorious and hostile possession and use of the land to the exclusion of the titled owner. |
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Amortization |
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Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. |
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Amortized Loan |
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The amount applied for less the prepaid finance charges. Prepaid finance charges can be found on the Good Faith Settlement Statement (HUD1 or HUD1A). For example, if the borrower's Note is for $100,000 and the prepaid finance charge total is $5,000, the Amount Financed would be $95,000. The Amount Financed is the amount on which the Annual Percentage Rate (APR) is calculated. |
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Annual Cap |
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The limit on the amount of an adjustable rate mortgage's interest rate can change over a 12-month period. An annual cap prevents your payments from changing too dramatically, even if the factors that determine changes in an adjustable mortgage's rate rise or fall sharply during that period. |
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Annual Percentage Rate (A.P.R.) |
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This is not the Note rate for which the borrower applied. It is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs, such as private mortgage insurance, loan discount, origination fees, and other credit costs. The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan. |
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Appurtenance |
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Anything attached to the land or used with it passing to the new owner. |
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Assumption of A Mortgage |
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Assumption by a purchaser of the primary liability for a payment of an existing mortgage or deed of trust. The seller remains secondarily liable unless specially released by the lender. |
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Attorney In Fact |
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A type of agency relationship where one person holds a POWER OF ATTORNEY allowing him to execute legal documents on behalf of another. Decisions made by the attorney in fact are binding on the principal. |
