Glossary
E
Earnest Money - A
deposit made by a Purchaser to demonstrate good faith; a down payment.
Easement - A right
created by grant, reservation, agreement, prescription, or necessary
implication, which one has in the land of another. For example, the right of
public utility companies to lay their lines across other's property is a
utility easement.
Encumbrance -Any
right to or interest in land that effects its value, including outstanding
mortgage loans, unpaid taxes, easements, or deed restrictions; a cloud on
title.
Equity -The
difference between fair market value and current indebtedness (balance
due). For example, if a person owes $10,000 dollars on his home and the
market value is now $50,000 dollars, he now has 80% equity in his home
($40,000 out of $50,000).
Escrow - An
agreement between two or more parties providing that certain instruments or
property be placed with a third party for safekeeping, pending the
fulfillment or performance of a specified act or condition.
Escrow Account - An
account in which a prescribed amount of money is deposited each time a
payment is collected to be used for paying real estate taxes and/or
insurance. For example, a mortgage, trust deed or land contract may require
a monthly payment of $260 with an additional $40 to pay taxes and
insurance. This $40 goes into an escrow account which, technically, belongs
to the Purchaser.
Have more questions? Try the RAM Funding
Note
Buyer Questions page. Unfamiliar with some of the terms used by
cash flow note buyers? Try the RAM
Cash Flow Note Definitions page.
To find out how we calculate the value of your mortgage, trust deed or land
contract, visit the
Present Value page.
You can find out about our
Cash Flow Purchase Options too.
What is a Cash Flow?
click here What is a Cash Flow Broker?
click here
If you still need something not covered
elsewhere, you can use our
Online Question Form or even
better yet -
Call one of our trust deed and land contract professionals TODAY at
1-800-397-3893.
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