Finance Terms
When you replace an old loan with a new one, often to get better loan terms.
What is refinancing?
The entity trying to get payment on a debt.
What is a debt collector?
The timeframe in which a lawsuit must be brought.
What is a statute of limitations?
Temporary pause in payments.
What is a forbearance (or deferment)?
When money is held by a third party until certain conditions are met.
What is escrow?
The difference between the loan (debt) amount and the amount you could sell the property for.
What is equity?
Term for falling behind on payments.
What is delinquency?
The names of the document(s) that start a lawsuit.
What are the Summons & Complaint?
Someone who signs a loan with you.
What is a co-signer?
A fresh start, when you have a lot of debts.
What is a bankruptcy?
A legal claim that gives someone the right to your property if you don't pay on a loan.
What is a security interest?
Status when you fail to repay a loan.
What is default?
Final, official decision made by the court in a case.
What is a judgment?
The annual cost of a loan to a borrower, including interest rate and fees and charges.
What is APR?
When someone represents themselves in court.
What is pro se?
When interest is added to the loan's principal.
What is capitalization?
When a lender stops trying to collect a debt and writes it off from their books.
What is a charge-off?
When someone loses a case because they don't show up to court.
What is a default judgment?
The period of time at the beginning of the loan when you don't have to pay.
What is a grace period?
When income is seized to pay a debt.
What is garnishment?
When you pay on a loan but the balance goes up over time.
What is negative amortization?
When a debt is transferred to another entity.
What is assignment?
A judge who deals with more minor offenses/charges.
What is a magistrate?
A large, one-time payment at the end of a loan.
What is a balloon payment?
When the lender demands the entire loan be repaid immediately.
What is acceleration?