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
A Construction method of using twice the number of framing members to provide additional structural strength. ...
Item falling under Section 57 of the Internal Revenue Code that may result in the imposition of the alternative minimum tax (AMT). These items of otherwise exempt income or deductions or of ...
A closed-end mortgage is a mortgage in which the collateralized property cannot be used as security for another loan. See also open-end mortgage for a better understanding of the ...
Corporation whose stockholders are taxed as partners. That is, income is taxed as direct income to the shareholders. The key advantage of this tax treatment is that shareholders escape ...
A zero lot line is a term in residential real estate that refers to houses that are either very close to or at the edge of the property line. These houses are also called zero lot line ...
Want to know what Net Listing means? Well, Net Listings are a type of listing where the home seller sets a minimum price he/she is willing to sell the property for and whatever amount above ...
(1) Judgment against a defendant who does not respond to the plaintiffs lawsuit or fails to appear in court at the hearing or trial date. (2) Judgment issued by the court against the ...
Typically, the term rider defines a financial concept, implying a written modification applied to an insurance policy, altering its initial clauses and provisions. The rider can update the ...
Situation where a neighbor hood is gradually occupied by progressively lower income people. ...
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.