Borrower Beware Key Terms & Definitions

An advantage or resource often in the form of property

• liability

• asset

• collateral

• default

A loan made to somene who may have difficulty repaying it on time, often requiring higher interest rates an other less favorable terms than those offered to borrowers of good financial standing.

• personal loan

• payday loan

• subprime loan

• signature laon

a legal proceeding that causes someone who has purchased a home with a mortgage (loan) to lose that home due to not paying the loan.

• collateral

• closing

• foreclosure

• default

an asset used to guarantee repayment of a loan (the house or car one has a loan against for example)

• default

• collateral

• liability

• debit

The entity that owns the money/monetary system in the United States

• TARP

• Freddie Mac

• Fannie Mae

• Federal Reserve

An estimate o the ability of a person or organization to fulfill their financial commitments, based on previous dealings

• bubble

• credit rating

• character

• collateral

failure to pay a loan

• foreclosure

• default

• deregulation

• collateral

asset prices appear to be based on implausible or inconsistent views about the future

• economic bubble or asset bubble

• speculative bubble or price bubble

• financial bubble or balloon

• all of these

giving favors or better conditions to a close friend or someone to whom you owe a favor or debt (or whom you want to owe you a favor or debt)

• Quid pro quo

• status quo

• fraud

• cronyism