earnest money deposit
A deposit made by the potential home buyer to
show that he or she is serious about buying the
house.
easement
A right of way giving persons other than the
owner access to or over a property.
effective age
An appraiser’s estimate of the physical
condition of a building. The actual age of a
building may be shorter or longer than its
effective age.
effective gross income
Normal annual income including overtime that is
regular or guaranteed. The income may be from
more than one source. Salary is generally the
principal source, but other income may qualify
if it is significant and stable.
eminent domain
The right of a government to take private
property for public use upon payment of its fair
market value. Eminent domain is the basis for
condemnation proceedings.
Employer-assisted housing
A special Fannie Mae housing initiative that
offers several different ways for employers to
work with local lenders to develop plans to
assist their employees in purchasing homes.
encroachment
An improvement that intrudes illegally on
another’s property.
encumbrance
Anything that affects or limits the fee simple
title to a property, such as mortgages, leases,
easements, or restrictions.
endorser
A person who signs ownership interest over to
another party. Contrast with co-maker.
Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other
creditors to make credit equally available
without discrimination based on race, color,
religion, national origin, age, sex, marital
status, or receipt of income from public
assistance programs.
equity
A homeowner's financial interest in a property.
Equity is the difference between the fair market
value of the property and the amount still owed
on its mortgage.
escrow
An item of value, money, or documents deposited
with a third party to be delivered upon the
fulfillment of a condition. For example, the
deposit by a borrower with the lender of funds
to pay taxes and insurance premiums when they
become due, or the deposit of funds or documents
with an attorney or escrow agent to be disbursed
upon the closing of a sale of real estate.
escrow account
The account in which a mortgage servicer holds
the borrower’s escrow payments prior to paying
property expenses.
escrow analysis
The periodic examination of escrow accounts to
determine if current monthly deposits will
provide sufficient funds to pay taxes,
insurance, and other bills when due.
escrow collections
Funds collected by the servicer and set aside in
an escrow account to pay the borrower’s property
taxes, mortgage insurance, and hazard insurance.
escrow disbursements
The use of escrow funds to pay real estate
taxes, hazard insurance, mortgage insurance, and
other property expenses as they become due.
escrow payment
The portion of a mortgagor’s monthly payment
that is held by the servicer to pay for taxes,
hazard insurance, mortgage insurance, lease
payments, and other items as they become due.
Known as "impounds" or "reserves" in some
states.
estate
The ownership interest of an individual in real
property. The sum total of all the real property
and personal property owned by an individual at
time of death.
eviction
The lawful expulsion of an occupant from real
property.
examination of title
The report on the title of a property from the
public records or an abstract of the title.
exclusive listing
A written contract that gives a licensed real
estate agent the exclusive right to sell a
property for a specified time, but reserving the
owner’s right to sell the property alone without
the payment of a commission.
executor
A person named in a will to administer an
estate. The court will appoint an administrator
if no executor is named. "Executrix" is the
feminine form.
