Glossary of Terms

Default: failure to pay interest or principal on a loan or security when due. Defaults occur when a debtor is unable to meet the legal obligation of debt repayment.

Delinquent Mortgage: occurs when you do not make your mortgage loan payment on time.

Escrow: also called an impound account, is an account the lender uses to pay the borrower’s non-mortgage related property ownership expenses.

HOA dues: homeowners association dues/assessments.

Lien: a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Mortgage Interest: the interest charged on a loan used to purchase a residence.

Principal Balance: the portion of the original loan amount which remains unpaid.