Glossary of Debt Related Terms

Unavoidable Cause

A cause which reasonable prudence and care could not have prevented, such as death, illness, papers lost in the mail, etc.

Underlying Financing

A mortgage, deed of trust, etc., prior to (underlying) a land contract, mortgage, etc , on the same property.

Underwriting

The analysis of the risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves the evaluation of the property as outlined in the appraisal report, and of the borrower's ability and willingness to repay the loan.

Undisclosed Principal

A principal whose identity is not revealed by an agent.

Uniform Laws

Laws approved by the National Conference of Commissioners on Uniform State Laws. Many have been adopted in one or more states. Among these are the Uniform Commercial Code, Uniform Negotiable Instruments Act, Uniform Partnership Act, Uniform Residential Landlord and Tenant Act, etc.

Uniform Settlement Statement

The Standard HUD Form 1 required to be given to the borrower, lender and seller at, or prior to, settlement.

Unilateral Contract

A contract under which one party expressly makes a promise, the other party, although making no reciprocal promise, may be obligated by law or may have already given consideration.

Unity Of Possession

In joint tenancy, the joint tenants must have equal rights to posesion.

Unmarketable Title

Title which contains defects that would allow a purchaser to be released from his obligation to purchase.

Unrecorded Instrument

A deed, mortgage, etc., which is not recorded in the county recorder's office and, therefore, not protected under recording statutes. Valid between the parties involved, but not against innocent third parties.

Useful Life

(1) In appraisal for sale purposes, the true economic value of a building in terms of years of use to the owner. (2) For tax purposes, the life set for depreciation. At any time during that period, a new life could begin for a new owner.