Search results
Results from the WOW.Com Content Network
A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. [ 1 ] The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract ) that the ...
These agencies are called "first-party" because they are part of the first party to the contract (i.e. the creditor). The second party is the consumer (or debtor). Typically, first-party agencies try to collect debts for several months before passing it to a third-party agency or selling the debt and writing off most of its value.
In general, second mortgages are subject to higher interest rates relative to the primary loan as they possess a higher level of risk for the second lien holder. [10] [11] [12] In the event of foreclosure, in which the borrower defaults on the real estate loan, the property used as collateral to secure the loan is sold to pay debts for both ...
Subrogation is the assumption by a third party (such as a second creditor or an insurance company) of another party's legal right to collect debts or damages. [1] It is a legal doctrine whereby one person is entitled to enforce the subsisting or revived rights of another for their own benefit. [2]
A mortgage lender is an investor that lends money secured by a mortgage on real estate. In today's world, most lenders sell the loans they write on the secondary mortgage market. When they sell the mortgage, they earn revenue called Service Release Premium. Typically, the purpose of the loan is for the borrower to purchase that same real estate.
Perfected liens are those for which a creditor has established a priority right in the encumbered property concerning third-party creditors. Perfection is generally accomplished by taking steps required by law to notify third-party creditors of the lien. The fact that an item of property is in the hands of the creditor usually constitutes ...
First-party collection agencies tend to nurture more constructive relationships with the second-party (called consumers or debtors) and are involved in the early months before they selling or passing the debt on to a third-party. The first-party writes off most of the value of the debt in the sale to a third-party collection agency. [38]: 62–3
Hypothec (/ h aɪ ˈ p ɒ θ ɪ k, ˈ h aɪ p ɒ θ-/; German: Hypothek, French: hypothèque, from Lat. hypotheca, from Gk. ὑποθήκη: hypothēkē), sometimes tacit hypothec, is a term used in civil law systems (e.g. the law of most of Continental Europe) or to refer to a registered real security of a creditor over real estate, but under some jurisdictions it may additionally cover ships ...