mortgages
credit
Credit means the right granted by a creditor to an applicant to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment. See: 12 CFR § 1002.2(j)
Business credit refers to extensions of credit...
credit reporting agency
A credit reporting agency (also called a credit bureau or credit agency) is a private company that collects and sells information about a person or corporation’s identifying information, debt, and repayment history in order to create credit...
credit score
A credit score is a number between 300 and 850 that serves as a numerical representation of a person’s creditworthiness. The higher the score, the better an individual’s chances of securing a loan since a higher score suggests a greater...
creditor
A creditor is someone (or an entity) to whom an obligation is owed. Most commonly, the obligation owed is an obligation to pay money for some prior services or to pay off a loan. The person who owes a creditor an obligation is known as a...
creditor's rights
Creditor’s rights can refer to many different aspects of creditor-debtor and creditor-creditor relations including a creditor’s rights to place a lien on a debtor’s property, garnish a debtor’s wages, set aside a fraudulent conveyance, and...
deed
A deed is a legal document that grants ownership to a piece of real estate or other property asset. A deed transfers the title of an asset to a new owner, and it is usually recorded in the local county clerk’s office. Recording is a way to...
default
A default is a failure to fulfill an obligation. Defaulting is most common in regards to debtor-creditor law and contract law. Typically, a default leads to judicial proceedings or triggers the application of a separate contract provision....
down payment
A down payment is an initial payment of a portion of a purchase price, paid by a buyer to a seller upon the execution of a sale agreement (note: agreement and contract are synonymous for purposes of this definition). A down payment serves...
draw
To draw is to produce, create, or make any picture or line. Some common usage of the term “draw” in a legal sense include:
The withdrawal of money from a bank account, such as through presenting a check. To receive money in advance,...encumber
To encumber (or incumber) means to effect an encumbrance on real property.
[Last updated in July of 2021 by the Wex Definitions Team]