Definition of "Usury"
An interest rate charged on a loan that exceeds the legal maximum interest rate within the state. It is illegal to do so. The maximum interest rate may depend on the type of lender and nature of the loan. Federal laws may also apply.
Popular Real Estate Terms
Expenditures incurred to develop real estate. An example is the cost to build a shopping center. ...
Net operating income (NOI) of property relative to its market value. If rental income property worth $1,000,000 results in NOI of $100,000, the overall return is 10%. NOI compared to ...
Upgrading made by a lessee to leased property. Examples are paneling and wallpapering. These improvements revert to the lessor at the expiration of the lease term. As improvement costs are ...
For real estate investors, the vacancy and credit loss is a way to determine a property’s potential for profit. This value is determined by subtracting the losses brought by vacant ...
Book value is a quintessential term used in the financial world and the real estate business. Though, there are slight differences in its interpretation in these two areas of ...
In appraisal jargon, property currently being appraised. ...
Legal right or privilege, such as that arising from a contract, to use land owned by another person or business for a specific purpose. The use should be reasonable for the circumstances. ...
Act of postponing a closing for another day or place. Adjournments of closing can occur for a variety of reasons including the lack of an appropriate closing statement, one or more parties ...
Special court for the purpose of providing fast, inexpensive and informal settlement of small financial claims between plaintiff and defendant. The parties represent themselves. A landlord ...
Comments for Usury
My loan was sold. Now, when I pay additional principal it is held in a suspense account until it reaches one month's payment. That means they get to hold my money and earn interest while I continue to pay interest on the full mortgage amount until I reach the one payment threshold. Isn't this double dipping?
Oct 08, 2023 15:49:57Hello Cheryl! Thank you for reaching out to us!
A mortgage suspense account is a temporary holding account used by mortgage servicers to hold funds when there is a discrepancy or uncertainty about the proper allocation of payments made by borrowers. It can happen when you underpay or overpay. In such cases, your lender can't refund the surplus or accept partial payment.
Oct 12, 2023 06:09:23A suspense account also exists when a borrower sends in a payment. However, there's an issue with the amount, account number, or other details. Instead of rejecting the payment outright, the mortgage servicer may place it in a suspense account.
Once the issue is resolved, the funds in the suspense account are released and applied to the appropriate part of the mortgage. This could be towards the principal, interest, escrow (if applicable), or any other relevant aspect.
Using a suspense account helps prevent delays in processing payments and ensures that payments are correctly allocated. It's a way for servicers to manage payments that don't align with the usual processing procedures.
If you have queries concerning a suspected foul play on behalf of your bank's policies, address the issue to your mortgage servicer or a HUD-approved housing counseling agency.
I entered into a contract with a real estate managing broker and I just learned that the interest rate far exceeds the Usury Law. Shouldn't he have known that?
May 11, 2018 08:14:29Hey, Derah
We'd need to know more about the case and the state you are in to give a fair opinion. It's best you find a real estate lawyer to help sort this usury problem out! Good luck!
May 18, 2018 10:45:57Have a question or comment?
We're here to help.