DRM

Non Revolving Credit:  Non-revolving credit is credit that can't be used again after payment. Examples are student loans and auto loans that can't be used again once they've ben repaid. In the case of a non-revolving credit card, the balance must be repaid that the end of the billing cycle.

Non-revolving credit is when credit is extended via a fixed repayment plan. As payments are paid on non-revolving credit plans, further credit is not extended (unlike in a revolving credit plan).

An example of non-revolving credit would be a car loan. In a car loan, credit is extended and repaid through a fixed installment plan.

-- Finance term definition - Non-Revolving Credit --In the case of the majority of car loans, borrowers repay the loan over the course of 5 or 6 years. As the payments are made, additional credit is not extended. Once the payments are finished, then the borrower no longer owes any more money. Another example of non-revolving credit would be a student loan.

The opposite of non-revolving credit is revolving credit. In the case of revolving credit, credit is "replenished" when the borrower makes their payments.

An example of revolving credit would be a credit card. If you owe $2,000 and have a $10,000 limit, then you would have $8,000 in available credit. If you pay off the $2,000, then your available credit would rise back up to $10,000.

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Closed ended loans: Loan agreement that does not allow a mortgagor (borrower) to repay the loan before its maturity date. See also closed-end mortgage.

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Definition of 'Foreclosure - FCL' :

A situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract.

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LoanMod:

We hear the phrase more and more often: loan modification. What exactly is loan modification?

When borrowers get in trouble, they can't make loan payments. The bank is left with a few options that are ugly for everybody. Often, the best option is loan modification.

Loan modifications allow the bank to make loan payments more affordable for borrowers. They may change interest rates, loan terms, loan balances, or other parts of the loan agreement.

                Loan modification mortgage is a process whereby a home owner’s mortgage is modified and both the lender and homeowner are bound by the new terms of the new mortgage. The most common loan modifications are listed below:

lowering the mortgage interest rate, reducing the mortgage principal balance, fixing adjustable interest rates within the mortgage, increasing the loan term throughout the mortgage, forgiveness of payment defaults and fees or any combination of the above