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E
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.
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.
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