Earnest Money
: Money deposited by a buyer to indicate and evidence good faith.

Effective Date of Loan Transfer
The date on which the mortgage payment is first due to the transferee servicer (Cypress Mortgage) pursuant to the assignment, sale or transfer of the servicing of the mortgage loan.

For loans purchased by Cypress Mortgage on and after the first day of one month through the last day of the same month, the effective date of the loan transfer shall be the first day of the following month.

Encumbrance
: Anything that affects or limits ownership of real propertry - such as, mortages, liens, easements, or restrictions of any kind.

Equity
The difference between the current market value of a property and the principal balance of all outstanding loans.

Escrow Fee
: Charged by the title company to service the transaction and to escrow (hold and disburse) money and documents. Usually split between buyer and seller.      [TOP]

Escrow
: The deposit of documents and funds with instructions to a neutral third party to carry out the provisions of an agreement or contract.

• Escrow for repairs: the practice of delivering all required money and documents to a neutral third party to hold until Cypress Mortgage, the Correspondent and the lender have fulfilled all of the conditions of the agreement.
• Closing and escrow: the escrow agent prepares documents, pays off existing loans, requests title insurance and divides tax and insurance payments between Cypress Mortgage and Correspondent.
• Mortgage escrow account: funds included in the monthly real estate loan payment to accumulate the amounts necessary for the future payment of property taxes, insurance premiums and other items.

Escrow Payments
The amounts constituting ground rents, taxes, assessments, water rates, sewer rates, municipal charges, mortgage insurance premiums and other payments required to be escrowed by the mortgagor with the mortgagee pursuant to the terms of any documents included in a Mortgage Loan File or the program documents.

Exclusive Right to Sell Listing
: A written agreement between owner and agent giving the agent the right to sell a property and collect a fee for a set term.