LU Ue Correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Loan-to-value ratio A. This is a deposit made to the seller to express the intent of purchase so that the offer is considered seriously. Mortgage points This is the maximum percentage of the value of a property that a lender is willing to loan. B. Closing costs This refers to the conditions attached to an offer to purchase property that is included in C. the contract which states that the buyer can back out if the certain reasonable conditions are not fulfilled, for example the lack of financing. Foreclosure This term describes the process through which an asset, not owned by the seller, is sold at D. a price lower than debt balance owed on the property. Short sale E. 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. Condominium This is the general name used to refer to and quantify the fees charged by lenders at the F. time they grant a mortgage loan. Private mortgage insurance Also referred to as PMI, this insurance policy protects the mortgage lender from a default G. by its mortgage borrower. Earnest money deposit This term is used to describe the situation in which the market value of a parcel of Click to see details. H. estate is lower than the amount owed on the loan used to purchase the parcel. This refers to the process through which lender takes possession of the property as a result of the owner's failure to make his or her mortgage payments. Negative equity I. Contingency clause J. This term refers to the transaction costs, including fees and expenses, incurred by the buyer during the purchase of a property that is over and above the price of the property. Grade It Now Save & Continue Continue without saving