Mortgage glossary of definitions, meanings, and descriptions of significance for some of our industry's most often used terms and phrases.

H

Hard Money Mortgage -- A mortgage given in return for cash, rather than to secure a portion of the purchase price, as with a purchase money mortgage.

Hardpan -- A compacted layer of soil, usually containing clay, through which it is difficult to drain or dig.

Hazard Insurance -- Real estate insurance protecting against loss caused by fir, some natural causes, vandalism, etc., depending upon the terms of the policy.

Hereditaments -- (1) Anything which could be considered real property. (2) Anything which may be inherited.

Homeowner's Association -- (1) An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area. (2) An association formed by the builder of condominiums or planned developments, and required by statute in some states. The builder's participation as well as the duties of the association is controlled by statute.

Homestead -- The dwelling (house and contiguous land) of the head of a family. Some states grant statutory exemptions, protecting homestead property (usually to set a maximum amount) against the rights of creditors. Property tax exemptions (usually to set a maximum amount) are also available in some states. Statutory requirements to establish a homestead may include a formal declaration to be recorded.

Home Warranty Insurance -- Private insurance insuring a buyer against defects (usually in plumbing, heating and electrical) in the home he has purchased. The period of insurance varies and both new and used homes may be insured.

Hypothecate -- To mortgage or pledge without delivery of the security to the lender.

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