NATIONAL HOMEOWNERS COLLEGE

Abatement generally refers to a lessening or reduction of something. It may refer to the removal of a problem which is contrary to public or private policy, or endangers others.

An option given to lenders through an "acceleration" clause in the mortgage or deed of trust requiring the borrower to pay the entire balance of the loan all at once if their loan is in default.

A sworn statement in writing usually given while under oath or in the presence of a notary.

The process in which a licensed or authorized person gives an estimate of property value.

The difference between the increased value of the property and the original value.

An asset-backed security is a security whose value and income payments are derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets that are unable to be sold individually. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can include common payments from credit cards, auto loans, and mortgage loans, to esoteric cash flows from aircraft leases, royalty payments and movie revenues

The transfer of property to be held in trust or to be used for the benefit of the creditors (lenders).