Dragnet Clause


Definition of "Dragnet clause"

Mortgage clause causing the mortgagor to pledge additional properties, mortgaged or not, as collateral to the present mortgage. Failure to pay any of the other mortgages causes a foreclosure on the dragnetted property even if its payments are current.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Landlocked

Parcel of land that is totally surrounded by other land parcels not providing access to a highway. ...

Quantity Survey

Complete estimated itemization of all costs in constructing a structure including site acquisition and preparation, material, and labor costs. A qu ...

Void

Canceling something such as voiding a check that was written. Having no legal consequence such as the cancellation of a contract by both parties. ...

Jeopardy

Danger, hazard, risk, or peril. For example, jeopardizing a piece of property by pledging it as collateral for a loan. ...

Beneficial Interest

Unit of ownership in a real estate investment trust. ...

Nonassumption Clause

A clause inserted in a mortgage agreement requiring a future buyer of the subject property to obtain the consent of the lending institution prior to a ...

Popular Real Estate FAQ

What Is PITI And What Does It Stand For?

PITI is the total monthly payment you make on a house-Principal, Interest, Taxes, and Insurance. ...

What Does A Back-end Ratio Mean?

A borrowers other debts, such as auto loans and credit cards, figured into the debt-to-income ratio. ...

What Is Comprehensive Homeowners Insurance?

Comprehensive is the most expensive type of homeowners insurance; it covers the most potential damages such as fire damage, water damage not caused by ...

What Is A Down Payment?

A down payment is the money you pay up front for the purchase of a home. ...

What Does FSBO Mean?

FSBO means for sale by owner. ...

Besides Making My Monthly Mortgage Payment, How Can I Build Equity Into My House?

When making your monthly mortgage payment, try to send a little bit more. This will go directly to the principal of the loan rather than the interest ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Seller’s Agent vs. Buyer’s Agent: the age-old question 7 Things to Consider Before Moving to a New City What Must I Disclose When Selling My Home? When to Dispute Your Home Appraisal Build or Buy? That’s the Big Question

FAQ

What is a gated community? What do I need to know about Watercraft Insurance? What is a qualifying ratio? What if the computer I want to insure is homemade or custom-built? What is a loan-to-value (LTD) ratio?