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
The real estate arbitration definition is an alternative way to settle disputes when the parties involved want to avoid a trial. There are some significant differences between an ...
Expenditures incurred building a structure, including material and labor. ...
Housing where affirmative action is proactively pursued protecting the housing rights of people of all races, nationalities, and religions. ...
Expected period that property will provide benefits. It is typically less than physical life of the property because the property continues to have physical life regardless of inefficiency ...
Literature, samples, equipment, tools, and other useful information that real estate brokers or agents can use for demonstration purposes to prospective buyers. ...
As one of the principles of contract, the lawful object meaning can be defined as an object or action which is authorized, approved, and not prohibited by law. A contract to be legal ...
Having a traditional salt box architecture with clapboard siding, the New England Colonial was enlarged for additional family members by adding extensions, often at the rear of the home. ...
Window having both screens and storm windows that can be easily interchanged according to seasonal needs. ...
Amount subject to depreciation, which equals the initial cost less the estimated salvage value. ...
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.