Glossary of foreclosure terms: M

mechanic's lien: Encumbrance on a property because of work performed on it, or for materials supplied to improve it.

membership fee: Periodic charge for the right to do something, such as hold a credit card.

monetary encumbrance: Encumbrance on property that names a specific amount of money which, if paid to the lienholder, would cause the encumbrance to be extinguished. See also nonmonetary encumbrance.

mortgage: Loan secured by real property. Technically, the word mortgage refers only to a two-party instrument between a mortgagor (borrower) and mortgagee (lender), and doesn't include loans made via a promissory note and deed of trust. However, the use of the word mortgage to describe this latter type of loan is so common that we use it to include both loan types throughout this book.

mortgage calculator: Specialized calculator for mathematically determining monthly payments, interest rates, and other features of a mortgage. Can be either handheld, a computer application, or hosted online.

mortgage estoppel letter: Letter from a lender that states exactly how much money is needed to pay to bring the loan up to date, or to pay off the loan in full. See also payoff demand.

mortgage insurance (MI): Insurance that benefits a lender in the event that the borrower defaults on a loan. Generally only applies to the top portion of a loan.

mortgagee: In a mortgage, the party that makes the loan and receives periodic payments, i.e. the lender. See also mortgagor.

mortgagor: In a mortgage, the party that borrows money and makes periodic payments, i.e. the borrower. See also mortgagee.

Multiple Listing Service (MLS): Computer-based system in which where members can present properties they have available for sale. MLSes are typically run by the local Board of Realtors, with access restricted to Realtors.