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
Measure of the value of all goods and services produced by the economy within its boundaries and is the nation's broadest gauge of economic health. GDA is often a measure of the state of ...
Same as term contract for deed: Method of selling and financing property whereby the buyer obtains possession, but the seller retains the title. ...
A legally transferable debt instrument by which the issuer agrees to pay the payee within a certain time period. Note usually pay a specified rate of interest tied to the market rate of ...
Literature, samples, equipment, tools, and other useful information that real estate brokers or agents can use for demonstration purposes to prospective buyers. ...
Style of the 19th century resembling an old church. It has a tile roof, arch-shape windows, stucco walls, and pyramid roof. ...
Lease that incorporates increases in agreed-on payments over the term of the lease contract. For example, a particular step-up lease may require that the lessee pay a 10% increase each year ...
Situation in which pledged property is held by a person or entity until the loan is paid. ...
Foreclosure sale enable in those states permitting the use of a power of sale clause to be inserted into a mortgage or deed of trust empowering the mortgagee to advertise and sell a ...
Interest deductible for taxes paid by the taxpayer. It is an itemized deduction on Form (individuals) or Form 1040 (individuals) or Form 1120 (corporations). An example is interest paid on ...
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.