Pre-Approval: a lender commits in order to lend in order to a potential debtor a predetermined amount borrowed according to a complete application for the loan, credit history, obligations, discounts and contains already been reviewed because of the a keen underwriter. Brand new relationship remains for as long as the newest borrower however fits new degree conditions during the time of pick.

Predatory Financing: abusive financing techniques that include an interest rate to help you somebody who doesn’t always have the capability to pay off

Predictive Details: The fresh variables that are an element of the formula spanning areas of a cards-rating design. This type of variables are accustomed to predict an effective borrower’s future credit overall performance.

Common Inventory: inventory which will take consideration over well-known inventory with regard to dividends and you can liquidation legal rights. Well-known stockholders typically have no voting liberties.

This can occur towards the income of the house, the latest pay back the borrowed funds entirely, or a foreclosures

Pre-foreclosure Marketing: an operation the spot where the borrower is actually allowed to promote a property to possess an amount less than what is due in it to prevent a foreclosures. So it sale completely matches new borrower’s obligations.

Prepayment: one number paid down to minimize the principal harmony out of financing before the deadline or commission entirely of home financing. In the for every circumstances, complete percentage happens up until the mortgage could have been totally amortized.

Prepayment Penalty: a provision in some loans you to cost you so you’re able to a beneficial debtor whom pays financing before it is due. [Read more…]