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Bankruptcy
A federal law Whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay.
Fair Market Value
The price which a willing buyer will pay a willing seller for a piece of real estate.
Interest rate
The amount of interest charged on a monthly loan payment; usually expressed as a percentage.
Delinquency
Failure of a borrower to make timely mortgage payments under a loan agreement.
Federally Assisted Projects
A federally assisted project is one which receives Federal reimbursement or payment of some project expenses such as planning, construction, right-of-way acquisition, and property management.
Debt-to-income ratio
A comparison of gross income to housing and non-housing expenses; With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.
Deed
The document that transfers ownership of a property
Housing counseling agency
Provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and homebuying.
Down payment
The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.
Foreclosure
A legal process in which mortgaged property is sold to pay the loan of the defaulting borrower.
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