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Glossary of Terms beginning with D

D

Date of Appraisal

The specific point in time as of which an appraiser designates the value of a home. Often stipulated as the date of inspection.

Debt

An obligation to repay some amount owed. This may or may not be monetary.

Debt Equity Ratio

The ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home. Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt.

Deed

A document indicating the ownership of a property.

Deed of Reconveyance

A document that transfers ownership of a property from a Trustee back to a borrower who has fulfilled the obligations of a mortgage.

Deed of Release

A document that dismisses a lien or other claim on a property.

Deed of Surrender

A document used to surrender any claim a person has to a property.

Deed of Trust

A document that transfers title in a property to a trustee, whose obligations and powers are stipulated. Often used in mortgage transactions.

Deed-in-lieu (of Foreclosure)

A document given by a borrower to a lender, transferring title of the property. Often used to avoid credit-damaging foreclosure procedures.

Default

The condition in which a borrower has failed to meet the obligations of a loan or mortgage.

Delinquency

The state in which a borrow has failed to meet payment obligations on time.

Deposit

Cash given along with an offer to purchase property, also called earnest money.

Depreciation

The natural decline in property value due to market forces or depletion of resources.

Detached Single-Family Home

A single building improvement intended to serve as a home for one family.

Discount Points

Points paid in addition to the loan origination fee to get a lower interest rate. One point is equal to one percent of the loan amount.

Distressed Property

A mortgaged property that has been foreclosed on.

Down Payment

An amount paid in cash for a property, with the intent to mortgage the remaining amount due.

Downspout

The pipe that water moves through to reach the ground from the rain gutter.

Due-on-sale Provision

A clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the property.

Duplex

A single-building improvement that is divided and provides two units serving as homes to two families.

Dwelling

A house or other building that serves as a home.

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