EARNEST MONEY DEPOSIT
A deposit made by the potential home buyer to show that he or
she is serious about buying the house.
EASEMENT A right
of way giving persons other than the owner access to or over
a property.
EFFECTIVE AGE An
appraiser’s estimate of the physical condition of a building.
The actual age of a building may be shorter or longer than its
effective age.
EFFECTIVE GROSS INCOME
Normal annual income including overtime that is regular or guaranteed.
The income may be from more than one source. Salary is generally
the principal source, but other income may qualify if it is
significant and stable.
EMINENT DOMAIN The
right of a government to take private property for public use
upon payment of its fair market value. Eminent domain is the
basis for condemnation proceedings.
EMPLOYER ASSISTED HOUSING
A special Fannie Mae housing initiative that offers several
different ways for employers to work with local lenders to develop
plans to assist their employees in purchasing homes.
ENCROACHMENT An
improvement that intrudes illegally on another’s property.
ENCUMBRANCE Anything
that affects or limits the fee simple title to a property, such
as mortgages, leases, easements, or restrictions.
ENDORSER A person
who signs ownership interest over to another party. Contrast
with co-maker.
EQUAL CREDIT OPPORTUNITY
ACT (ECOA) A federal law that requires lenders and
other creditors to make credit equally available without discrimination
based on race, color, religion, national origin, age, sex, marital
status, or receipt of income from public assistance programs.
EQUITY A homeowner's
financial interest in a property. Equity is the difference between
the fair market value of the property and the amount still owed
on its mortgage.
ESCROW An item of
value, money, or documents deposited with a third party to be
delivered upon the fulfillment of a condition. For example,
the deposit by a borrower with the lender of funds to pay taxes
and insurance premiums when they become due, or the deposit
of funds or documents with an attorney or escrow agent to be
disbursed upon the closing of a sale of real estate.
ESCROW ACCOUNT The
account in which a mortgage servicer holds the borrower’s
escrow payments prior to paying property expenses.
ESCROW ANALYSIS
The periodic examination of escrow accounts to determine if
current monthly deposits will provide sufficient funds to pay
taxes, insurance, and other bills when due.
ESCROW COLLECTIONS
Funds collected by the servicer and set aside in an escrow account
to pay the borrower’s property taxes, mortgage insurance,
and hazard insurance.
ESCROW DISBURSEMENTS
The use of escrow funds to pay real estate taxes, hazard insurance,
mortgage insurance, and other property expenses as they become
due.
ESCROW PAYMENT The
portion of a mortgagor’s monthly payment that is held
by the servicer to pay for taxes, hazard insurance, mortgage
insurance, lease payments, and other items as they become due.
Known as "impounds" or "reserves" in some
states.
ESTATE The ownership
interest of an individual in real property. The sum total of
all the real property and personal property owned by an individual
at time of death.
EVICTION The lawful
expulsion of an occupant from real property.
EXAMINATION OF TITLE
The report on the title of a property from the public records
or an abstract of the title.
EXCLUSIVE LISTING
A written contract that gives a licensed real estate agent the
exclusive right to sell a property for a specified time.
EXECUTOR A person
named in a will to administer an estate. The court will appoint
an administrator if no executor is named. "Executrix"
is the feminine form
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