FHA Loan and Mortgage Glossary - Terms Beginning with 'D'

  • Debt: The amount of money that is owed by a particular person to creditors.
  • Deed: A document that shows who is the owner of title to property which must be legally recorded by the county in which the property is located.
  • Deed-In-Lieu: The deed is given to the mortgage company in lieu of the loan amount borrowed in order to satisfy the mortgage debt owed. Borrowers may do this to avoid foreclosure in the case that they have fallen onto circumstances that make it impossible to continue paying their current mortgage amount.
  • Default: When a borrower does not make their monthly mortgage payment they go into default with the lender which means that they are not keeping up with the mortgage contract as agreed.
  • Delinquency: When a borrower does not make their monthly mortgage payment by the date due.
  • Deposit: This is also called earnest money. This is when a buyer will put down money on a home in order to keep the seller from selling the home to another buyer while they go through the process of closing their mortgage loan and purchasing the home.
  • Depreciation: the value of property declines. This is tax deductible.
  • Down Payment: The amount of money a borrower intends to pay up front for the property they are purchasing. The higher the down payment, the more likely the borrower will get the loan with better terms and a lower monthly mortgage payment.
  • Due-On-Sale provision: The provision in a mortgage contract that allows the lender to take back the full amount due on the mortgage lien at the time the home is sold.