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 American Institute of Real Estate Appraisers, in short, the AIREA, or the Appraisal Institute as it is known nowadays, is an institute that aims to advance professionalism in the real ...
The gross operating income definition is the total income that a real estate development receives from rentals and services before any costs or expenses are subtracted. Gross operating ...
Amount received by a seller of real property in the form of credit rather than cash. Interest is typically received on the note. If a house is sold for $300,000 of which $100,000 is cash ...
Housing whose rental payments are reduced because of aid granted by the federal, state, or local governments, private enterprises, or individuals. For example, monthly rental payments for ...
Judicially determined minimum selling price for auctioned property. For example, a judge rules that a foreclosed home may be sold for less than $200,000, ...
A life estate right of a widow on the demise of her husband, if he dies intestate, to all his lands and possessions for her and her children's support. If she dissents from his will, the ...
Right of a current stockholder to maintain the percentage ownership in a real estate company by purchasing new shares on a proportionate basis before they are issued to the public. It ...
Amount a manger of real estate receives for his efforts. For example, a manger is to receive 2% of rentals collected as compensation from the landlord to manage the property. If the ...
Proposing or presenting for acceptance a price for a property parcel. Evidence of willingness to enter into a sales agreement. The bid price in a real estate or security ...
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.