Money that is owed.

A term referring to the use of the property. Generally, there are four types of occupancy: 1) owner (lives in the property), 2) non-owner (does not live in the property; rents the property), 3) investment, and 4) second/vacation (property is not rented, but is lived in at least one day per year by the owner).

A written notice to a borrower that a default has occurred and that legal action may be taken.

A formal document showing the existence of a debt and stating terms of repayment.

A mortgage loan that does not conform to agency-established limits such as loan-to-value ratio, term and other characteristics. Usually the regulatory limits have to do with Fannie Mae, Freddie Mac and other government-established guidelines.

The original price the borrower paid for the mortgaged property.

The borrower.

Classification of property (i.e., single-family, townhouse, condominium, etc).

A form of insurance protection for a borrower that would pay part or all of the mortgage debt upon the death of the insured person.

A contract/agreement between the borrower and the lender for repayment of the loan (also called a “note”).