Mortgage Terms - "D"

Declaration of Restrictions

A set of restrictions filed by a subdivider to cover an entire tract or subdivision.

Deed of Trust/Mortgage

An instrument given by the borrower to a third party (trustee) vesting title to the property in the trustee as security for the borrower's repayment of the mortgage loan.

Deed of Trust Rider

The document required by the lender to be recorded along with the security instrument for an ARM.

Deed Restriction

Provision placed in a deed to control use and occupancy of the property by future owners.

Default

Failure to make mortgage payment or violates other provision of the mortgage note.

Deficiency Judgment:

Personal claim against the debtor, when foreclosed property does not yield enough at the sale to pay off the loans and interest against it.

Defective Title

Title to a negotiable instrument obtained by fraud. Title to real property which lacks some of the elements necessary to transfer good title.

Depreciation

Decrease in value to real property improvements caused by deterioration or obsolescence..

Devise

Real Estate left by will.

Devisee

One to whom real estate is given by will.

Devisor

A testator who leaves real estate.

Direct Endorsement

A lender that can complete the processing and closing of an FHA loan without prior approval from FHA.

Direct Reduction Mortgage

An amortized mortgage. One on which principle and interest are being computed on the remaining balance.

Discount

A loan funded below par (100%). Lenders or investors will fund loans at a discount in order increase the overall yield on the note.

Discount

In an ARM with an initial discount, the lender gives up a number of percentage points of interest to give you a lower rate and lower payments for part of the mortgage term. After the discount period, the ARM rate will probably go up depending on the index rate.

Disbursements

Payments made during the course of an escrow or at closing.

Documentary Tax Stamps

Stamps, affixed to a deed, showing the amount of transfer tax.

Dower

The rights of a widow to a portion of her deceased husband's property.

Down payment

Cash to be paid by the buyer at closing to consummate a real estate transaction.

Dragnet Clause

A clause in a mortgage or deed of trust which places the real estate as security for existing debts between the parties.