Glossary of foreclosure terms: D
debt factoring: Sale of accounts receivable for immediate cash.
deed: Document that shows transfer of real property.
deed in lieu of foreclosure: Exchange whereby a property owner gives the lender the property's deed in exchange for release from the loan, thereby avoiding foreclosure.
deed of trust: Financing instrument that secures a property as collateral for a loan. The deed of trust describes the rights of the trustee and beneficiary to repossess and sell that property if the owner fails to fulfill obligations described in the accompanying promissory note.
default: Failure to live up to a legal obligation, such as repayment of a loan.
deferment: Agreement to delay ("defer") certain requirements, such as monthly loan payments, for a period of time.
deficiency judgment: Requirement that a foreclosed property owner repay a mortgage in full even if sale of the property doesn't bring in enough money. Only permitted for judicial foreclosures in some states.
demand clause: Clause in a mortgage that allows the lender to require immediate repayment of the remaining principal for any reason.
Department of Housing and Urban Development (HUD): Part of the U.S. government that administers numerous programs designed to enable and stabilize the domestic housing market. Two subdivisions under HUD are the Federal Housing Administration (FHA), which has several programs that encourage home ownership, and the Office of Federal Housing Enterprise Oversight (OFHEO), which oversees Fannie Mae and Freddie Mac. www.hud.gov.
Department of Justice (DOJ): Branch of the U.S. government that prosecutes fraud. It also maintains a list of credit-counseling services at www.usdoj.gov/ust/eo/bapcpa/ccde. www.usdoj.gov.
discharged: Debt that a debtor is longer required to repay. Debts can be discharged either by agreement with the lender or by action of bankruptcy.
discount broker: Real estate agency that charges lower fees than others in their area. Some discount brokers achieve savings by offering their services a la carte--that is, piece by piece.
disposable income: Money available from income after all necessities have been paid for.
down payment: Initial, lump payment for a large purchase. The remainder of the purchase price is financed, such as through a mortgage.
due-on-sale clause: See alienation clause.
duress: Undue pressure to make a decision. A contract that was signed under duress is voidable by the party who experienced the pressure.
