Glossary of foreclosure terms: H

hazard insurance: Insurance that pays out when certain damages affect a property, in particular fire and flood. Lenders require hazard insurance to ensure that their security is protected against such events.

holding costs: Money required to continue owning a property, separate from any costs of use or maintenance. Property taxes and mortgage payments are the two main carrying costs.

homestead exemption: Part of a home's value that's protected from creditors in the event of bankruptcy.