- EU ln. Description Loan to-value ratio Mortgage points Closing costs C. Foreclosure D. Short sale E. Condominium F. This refers to the conditions attached to an offer to purchase property that is included in the contract which states that the buyer can back out if the certain reasonable conditions are not fulfilled, for example the lack of financing. This insurance policy protects the mortgage lender from a default by its mortgage borrower, and it is typically required when the borrower uses a down payment that is less than 20%. This is the general name used to refer to and quantify the fees charged by lenders at the time they grant a mortgage loan. This is the name given to a situation in which a home and the property on which it sits secures a $185,000 mortgage loan, and the property is sold for only $155,000. This is a term used by financial lenders defined as the ratio of the loan underwritten to the value of the property in consideration. This refers to the situation in which a homeowner is unable to make the principal and interest payments on his or her mortgage, so the lender can seize and sell the property as stipulated in the terms of the mortgage contract This is a form of direct ownership of an individual unit in a multiunit project in which common areas and facilities, such as the lobbies. recreational areas, and facilities, are owned by all property owners in the project, This is the money pledged by a potential house buyer to show his or her good faith when making an offer. This is the general name given to the expenses that a borrower pays when his or her mortgage loan doxed, the funds are paid to the seller, and the buyer receives title to the purchased property, This term is used to describe the situation in which the market value of a parcel of real estate is lower than the amount owed on the loan used to purchase the parcel. Private mortgage insurance G. Earnest money deposit H. Negative equity Contingency clause 6. Vocabulary - Purchasing property What Do These Property-Purchasing Terms Mean Match the terms relating to the basic terminology and concepts associated with making housing decisions with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term