It is important to realize that there are a lot of technical terms and phrases used in the field of mortgages. The reason why I am singling out technical terms and phrases is that the use of these technical terms and phrases may result in a communication gap.
Are you surprised? I too was surprised when I heard that the use of technical terms and phrases may lead to a communication gap. I was of the opinion that use of technical terms will enable the parties to avoid the possibility of a communication gap. However, that would be true if a single universal definition was applied to technical terms and phrases. In case of mortgages, that is not so. You will find that each and every lender uses a particular technical term or a particular technical phrase in different contexts and with different meanings. Is this wrong? Yes!!! Can some thing be done about it? No!!! The reason why not much can be done about it is that the average borrower of money hardly has any reason to make use of these technical terms and phrases. It is the lender of money who uses these terms and phrases.
The person in obtaining the mortgage does not have any idea about the exact meaning of these terms. In most cases, the borrower understands the meaning of the term with reference to the context. As is obvious, this use of technical terms and phrases results in a gray area. There is a possibility that the mortgage lender may use a particular term in a particular contest with reference to a particular meaning and the borrower of the money may understand it in a different context or in a different meaning. There is a possibility that this gap in communication may be innocent. However, there is an equally probable chance that this communication gap may not be so innocent. The money lender may use this as a method to create confusion and cheat the borrower. If you want to avoid such a scenario where you and your moneylender are talking in different languages, I would suggest you to insist that all technical terms of clearly explained.