Bankruptcy - have a law declared insolvent financially. There are two types of bankruptcy - liquidation, in which your debts are cleared (empty), and restructuring, where you can ask the Court for a plan of how you're going to pay his debts.
Collateral - Property acceptable as security for a loan or other obligation.
Debt Collection Agency - the company responsible for collecting the debts, which it deserves.
Contract - An agreement between two or more parties, usually written, and applicable law.
Co-signer - to approve (another record), as the application of a loan agreement, lease or credit. If the principal debtor does not pay, the cosigner is fully responsible for the loan or debt.
Credit Bureau - an organization that companies using credit information on prospective customers.
Report of a credit account your credit history prepared by a credit bureau. A credit report contains credit history, as you need for that, and if you pay on time, and personal history, as your old address, employment record and any prosecution in which you been involved.
Creditor - A person or entity (such as a bank) to whom a debt.
Debtor - A person or entity (eg a bank) who owes money.
Debt to Income - Most mortgage lenders use this ratio to analyze your financial well-being. It pleased your monthly debt divided by your monthly income. The decrease in the percentage the better your financial situation. This is often referred to as credit worthiness.
Default - you do not pay money when due. A default on a mortgage or a place where you do not make loan payments on time, can not maintain adequate insurance or violate some other provision of the agreement with the mortgage company / loan.
Discharge (of debts) - entered the Court with the liabilities of the person or company that filed for bankruptcy.
Dischargeable debts - Debts that can be erased by bankruptcy.
Payment - A cash payment from a buyer when they purchase a property.
Shareholders' equity - home value increase or decrease the amount of home mortgage creates equity. Equity is the difference between what is owed and the sale value of your home. Most lenders will allow home equity to borrow up to 80% of this value.
Fair Isaac and Company - Fair Isaac is the company responsible for creating the popular FICO score. This three-digit score is created by the information in your credit report and ranges 300-850.
Foreclosure - Forced sale of assets to pay off the loan with the owner is in default.
Foreclosure - A court order to a third party who has money or property belonging to a defendant to retain and appear in court to respond to requests.
Grace Period - A period of time that you are not obligated to make payments on a debt.
Guarantor - a person who makes a promise binding to pay another debt or perform the duty of another person if that person neglects or fails to perform.
Interest - A commission that you pay a bank or other lender to lend you money or extending credit. It is calculated as a percentage of the mortgage or loan.
Lien - The right to take and hold or sell the property of a debtor as security or payment of a debt or duty.
Loan Consolidation - combining loans into one new loan. Usually done to obtain more favorable terms, such as lower cost repayments or longer to pay.
Principal - the amount due on the debt of which interest is calculated. If you purchased an item of $ 100 with a credit card, which would be the principal balance.
Reprise - A creditor to take property that was collateral for a loan.
Secured debt - debt with a creditor has a lien. Car loan would be an example of secured debt.
Duration - The time required to repay a loan.
Unsecured debt - A debt that is not related to an item of property. The debt of the credit card is an example of unsecured debt.
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