Nonrecourse refers to a type of debt where the creditor may only look to the collateral to satisfy the unpaid loan, and not the debtor’s personal assets (as with a recourse loan). For example, the Seventh Circuit in Racine v. Commissioner...
mortgages
option ARM
An Option ARM (adjustable-rate mortgage) is a type of mortgage where the borrower has several possible payment choices. The borrower may pay:
A payment covering the interest and principal amounts, which will reduce the amount owed on...PITI
Abbreviation for the major expenses that make up a mortgage payment: principal (the amount borrowed), interest, (property) taxes, and (homeowners' and private mortgage) insurance. The total amount of PITI is normally quoted on a monthly basis and is a...
PMI
PMI is an abbreviation for private mortgage insurance, which is a type of insurance that insures the mortgagee, as the lender, against losses resulting from a breach of the mortgagor's obligation to repay the loan.
PMI is...
power of sale clause
Power of sale clause is a provision in many secured loans that allow lenders to receive a non-judicial foreclosure on the assets securing loans in default. Typically, a lender must go through a lengthy judicial process for taking over assets...
prepayment penalty
A prepayment penalty clause is common in mortgage contracts, and it specifies that if the borrower pays down or pays off the mortgage early, usually within the first five years of the loan, a penalty will be levied. The prepayment penalty...
priority
Priority refers to the order of preference given to different interests or rights. Priority appears in multiple areas of law regarding debt, equity, bankruptcy, and patents. The most common appearance of priority arises in relations among...
private mortgage insurance
Private mortgage insurance, also known as PMI, is a type of insurance that covers the mortgagee (the lender) against losses resulting from a breach of the mortgagor's obligation to repay the loan.
PMI is usually an insurance...
purchase money mortgage
A purchase money mortgage is a mortgage on a piece of real property given by the buyer to the seller or a third-party as part of the deal to buy the property.
Purchase money mortgages are executed simultaneously with the...
purchase money resulting trust
In trusts and estates law, a purchase money resulting trust is a type of trust used in domestic partnerships when property is purchased jointly by two partners, but the title is held in the name of only one partner. If the title-holder dies...