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Debt - Item of value owed to another. See also, installment loan and revolving account. |
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Debt Service - Any amount paid over a given period of time for the repayment of debt, including principal and interest; usually said of payments relating to commercial or investment property.
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Debt-to-Income Ratio - Percentage of a loan
applicant's gross monthly income paid toward all expenses; includes housing
expense plus installment and revolving debts such as car loans, credit card
accounts and so on. Sometimes called a "back-end ratio." See also, housing-to-income
ratio.
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Deed - Legal document evidencing ownership of real property; shows the conveyance of ownership from one party to another.
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Deed in Lieu of Foreclosure - Act of a borrower voluntarily turning over ownership of a property to a lender in order to avoid foreclosure proceedings.
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Deed of Reconveyance
- See reconveyance.
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Deed of Trust - Document commonly used in Oregon to secure a lender's interest in real property for which the lender has made a loan. Actual title and the deed belong to the owner, but the deed of trust conveys to a neutral third party an ownership interest that can be used to foreclose on the note and take the property to pay a borrower's debt in the event of default.
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Default - Failure to perform a legal duty, such as to make mortgage payments on a timely basis or to comply with other requirements of a deed of trust.
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Delinquency - Overdue debt; failure to make a payment when required.
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Department of Housing
and Urban Development - See HUD.
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Department of Real Estate - See Real Estate Agency.
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Department of Veterans Affairs
- Agency of the federal government that administers benefits for veterans of the military services. VA programs include a program to provide guarantees on home loans made to eligible veterans. The VA guarantee allows a veteran to buy a home up to a specified price with no down payment. Qualification guidelines for VA-guaranteed loans are more flexible than those for conventional loans. See also, certificate
of eligibility and certificate of reasonable value.
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Deposit - (1) Sum of money given by a buyer to hold a particular item for purchase by that buyer; earnest money. See also, earnest money deposit. (2) Natural accumulation of mineral resources (e.g., gold, coal, oil, etc.).
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Depreciation -
(1) Decline in value of property due to wear, deterioration or obsolescence; opposite of appreciation.
(2) Accounting statistic measuring loss in value for purposes of producing a tax
deduction. Owners of income-producing real estate must take a deduction for
depreciation. The Internal Revenue Service assumes a depreciation deduction has
been taken for income property, even if the deduction actually was not taken. See also, straight line depreciation.
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Detached - Said of a structure that stands separate from another structure, such as a "detached garage," or a "detached home."
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Direct Leveraging Loan Program - Home loan program administered by U.S. Department of Agriculture that provides low-cost loans in certain rural portions of Oregon and other states (not available in the North Willamette Valley). Under the program, borrowers are able to get below-market interest rates with loan terms of 30 years or more.
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Discount - (1) Amount paid to "buy down," or reduce, the interest rate on an installment note, expressed in points. (One point equals 1 percent of the loan amount.) (2) Difference between the face value of a note or deed of trust and its present value.
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Discount Point - Expression of value paid to lower, or "buy down," the interest rate on a mortgage. One point equals 1 percent of the loan amount; hence, one point paid on a loan of $100,000 equals $1,000. Typically, each point paid on a 30-year, fixed-rate loan lowers the nominal rate by about 0.125 percent. Thus, paying one point on such a loan with an interest rate of 7 percent would lower the rate to 6.875 percent. Lenders may allow buyers to pay
points in whole or fractional increments. When inquiring about interest rates, buyers need to be sure to ask how many discount points are required at the rate the lender is quoting. If comparing different lenders' rates, compare the interest rates "at par," or zero discount points, as well as each loan's Annual Percentage Rate (APR). It often makes sense to pay discount points when planning to hold a property for a long time, usually more than eight to 10 years.
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Double Net Lease -
Agreement in which a tenant, or lessee, pays regular lease payments in addition
to property taxes and insurance for the leased property; contrast with gross lease. Sometimes referred to as "net net" or "NN." See also, net lease and triple net lease.
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Down Payment - Part of the purchase price for a property that buyer does not finance; typically paid in cash. A variety of loan programs exist today for the purchase of a primary residence that allow borrowers many options in the down payment required. Some programs, which are available to anyone on the basis of creditworthiness, require no down payment at all, and may even provide for financing a large portion of the transaction closing costs.
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Dry Rot - Fungal decay of seasoned wood.
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Due-on-Sale Clause - Provision in a mortgage that allows the lender to require full repayment if the borrower sells the property that serves as security for the mortgage.
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Due-on-Transfer Clause - Similar to a due-on-sale clause, allows lender to require full repayment upon any transfer of the property. Also called an "alienation clause."
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Duplex - Single
building containing two separate dwelling units.
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