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.
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