Term Answer Description Loan-to-value ratio Mortgage points This refers to an apartment in a building or a residential complex that is individually owned 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 A. B. Closing costs C. 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 Foreclosure D. This policy is often provided by private insurers to protect the lenders against loss if the borrower defaults in making payments towards the loans Short sale E. This is the general name given to the expenses that a borrower pays when his or her mortgage loan is closed, the funds are paid to the seller, and the buyer receives title to the purchased property This is the maximum percentage of the value of a property that a lender is willing to loan Condominium F. Private mortgageG. This term is often used by lenders as an alternative of charging interest insurance on their loans Earnest money deposit This term describes the process through which an asset, not owned by the seller, is sold at a price lower than debt balance owed on the property H. Negative equity 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 is a deposit made to the seller to express the intent of purchase so that the offer is considered seriously Contingency clause