Servicing Advances definition: Copy, customize, and use instantly
Introduction
The term "Servicing Advances" refers to payments or costs made by a lender or servicer to maintain or protect a loan's underlying collateral, typically in cases where the borrower fails to make timely payments. These advances are essential for ensuring that the loan remains in good standing and that the interests of the lender are protected. Servicing Advances are often used to cover expenses like insurance premiums, taxes, and property maintenance.
Below are various examples of how "Servicing Advances" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Servicing Advances" as a protection against loan defaults
This definition ties "Servicing Advances" to protecting the lender in case of borrower defaults.
"Servicing Advances" means any payments made by the servicer to cover the expenses of insurance premiums, property taxes, or other costs necessary to preserve or protect the value of the loan collateral when the borrower defaults.
Definition of "Servicing Advances" for covering collateral-related expenses
This definition connects "Servicing Advances" to expenses incurred to maintain the collateral.
"Servicing Advances" refers to payments made by the loan servicer to cover expenses such as insurance, taxes, or maintenance costs for the collateral property, ensuring that the loan remains in good standing.
Definition of "Servicing Advances" as part of the loan servicing process
This definition links "Servicing Advances" to the broader loan servicing process.
"Servicing Advances" means payments made by the servicer to cover necessary costs like insurance or taxes that are required to keep the loan and its collateral protected during the life of the loan.
Definition of "Servicing Advances" for tax and insurance coverage
This definition applies "Servicing Advances" to specific coverage types.
"Servicing Advances" refers to funds advanced by the servicer to cover the costs of property taxes, homeowner’s insurance, or similar expenses in order to prevent any lapse in coverage or taxes that could jeopardize the loan's standing.
Definition of "Servicing Advances" as payment for property maintenance
This definition ties "Servicing Advances" to property upkeep.
"Servicing Advances" refers to payments made by the servicer for necessary property maintenance, including repairs, inspections, and any services required to maintain the property’s value.
Definition of "Servicing Advances" in relation to escrow accounts
This definition connects "Servicing Advances" to escrow account payments.
"Servicing Advances" means funds advanced by the servicer to cover escrow obligations such as taxes and insurance, where the borrower has failed to provide adequate funds in the escrow account.
Definition of "Servicing Advances" for temporary payment of overdue costs
This definition links "Servicing Advances" to covering overdue expenses temporarily.
"Servicing Advances" refers to payments made by the servicer on behalf of the borrower for overdue property-related costs, such as taxes or insurance, to prevent the loan from being in default.
Definition of "Servicing Advances" for loan protection
This definition applies "Servicing Advances" to protecting the loan.
"Servicing Advances" means any amount paid by the servicer to cover required expenses on behalf of the borrower to ensure the loan’s collateral remains in good condition and does not risk default.
Definition of "Servicing Advances" for defaulted loan collateral
This definition ties "Servicing Advances" to the protection of collateral in defaulted loans.
"Servicing Advances" refers to any advances made by the servicer to cover costs associated with protecting the collateral in the event of borrower default, such as insurance and taxes.
Definition of "Servicing Advances" for insurance-related expenses
This definition connects "Servicing Advances" to insurance coverage.
"Servicing Advances" means the funds advanced by the servicer to cover insurance premiums required to maintain full coverage on the collateral property when the borrower fails to do so.
Definition of "Servicing Advances" as tax payments
This definition ties "Servicing Advances" to tax payments for the property.
"Servicing Advances" refers to payments made by the servicer for property taxes or other government-imposed obligations on the collateral property to avoid potential penalties or foreclosure.
Definition of "Servicing Advances" for overdue costs paid by the servicer
This definition applies "Servicing Advances" to situations involving overdue costs.
"Servicing Advances" refers to any amounts paid by the servicer to cover overdue expenses such as taxes, insurance, or other costs, to prevent the borrower’s default from affecting the loan’s standing.
Definition of "Servicing Advances" as funds used for maintaining collateral value
This definition connects "Servicing Advances" to the preservation of collateral value.
"Servicing Advances" means any funds advanced by the servicer to maintain or enhance the value of the loan collateral, such as for property repairs or improvements, in order to ensure the loan remains secure.
Definition of "Servicing Advances" for loan servicing costs
This definition applies "Servicing Advances" to the broader category of loan servicing.
"Servicing Advances" refers to payments made by the loan servicer to cover various costs associated with servicing the loan, including those necessary to protect the loan collateral from deterioration or loss of value.
Definition of "Servicing Advances" for legal expenses
This definition ties "Servicing Advances" to legal expenses.
"Servicing Advances" refers to any payments made by the servicer to cover legal costs, including foreclosure-related fees, litigation, or court costs required to protect the loan’s interests.
Definition of "Servicing Advances" as costs associated with foreclosure
This definition links "Servicing Advances" to foreclosure expenses.
"Servicing Advances" means funds advanced by the servicer to cover expenses such as legal fees, court costs, or other expenses incurred during the foreclosure process.
Definition of "Servicing Advances" in relation to loan recovery
This definition applies "Servicing Advances" to loan recovery efforts.
"Servicing Advances" refers to funds advanced by the servicer to recover costs, such as property-related expenses or legal fees, when the borrower is in default and the loan is in the process of recovery.
Definition of "Servicing Advances" for protection against collateral loss
This definition connects "Servicing Advances" to preventing collateral loss.
"Servicing Advances" means any funds advanced by the servicer to ensure the continued protection and preservation of the collateral, thus preventing any potential loss or decrease in value.
Definition of "Servicing Advances" for maintaining borrower compliance
This definition ties "Servicing Advances" to ensuring borrower compliance.
"Servicing Advances" refers to the payments made by the servicer to ensure that the borrower maintains compliance with loan terms, including covering costs like insurance and taxes on behalf of the borrower.
Definition of "Servicing Advances" for covering delinquent expenses
This definition ties "Servicing Advances" to covering delinquent expenses on behalf of the borrower.
"Servicing Advances" refers to funds advanced by the servicer to cover delinquent expenses, such as insurance or taxes, to ensure that the loan remains in good standing.
Definition of "Servicing Advances" as short-term payments
This definition connects "Servicing Advances" to short-term payments that prevent loan default.
"Servicing Advances" means temporary payments made by the servicer to cover required costs such as insurance premiums or taxes, which the borrower has failed to pay in a timely manner.
Definition of "Servicing Advances" for repair and maintenance
This definition links "Servicing Advances" to repair and maintenance costs of the collateral.
"Servicing Advances" refers to amounts paid by the servicer for necessary repairs or maintenance on the collateral property, particularly when the borrower neglects to maintain the property adequately.
Definition of "Servicing Advances" as part of a default resolution strategy
This definition applies "Servicing Advances" to efforts to resolve defaults.
"Servicing Advances" refers to payments made by the servicer for expenses related to default resolution, including those necessary to avoid foreclosure or protect the value of the collateral.
Definition of "Servicing Advances" for property tax payments
This definition ties "Servicing Advances" specifically to property taxes.
"Servicing Advances" means payments made by the servicer to cover property taxes when the borrower fails to make these payments, ensuring that the property does not incur penalties.
Definition of "Servicing Advances" as fees for loan management
This definition connects "Servicing Advances" to the fees for managing a loan.
"Servicing Advances" refers to any fees paid by the servicer to manage the loan, including costs for default prevention, property maintenance, and ensuring the loan’s continued compliance with all terms.
Definition of "Servicing Advances" for hazard insurance coverage
This definition applies "Servicing Advances" to hazard insurance.
"Servicing Advances" refers to payments made by the servicer for hazard insurance premiums when the borrower fails to make the required payments, ensuring that the property is adequately insured.
Definition of "Servicing Advances" for flood insurance
This definition ties "Servicing Advances" to flood insurance payments.
"Servicing Advances" refers to any amounts paid by the servicer for flood insurance premiums on behalf of the borrower to ensure the property is covered in case of flooding.
Definition of "Servicing Advances" for third-party service payments
This definition links "Servicing Advances" to third-party service costs.
"Servicing Advances" means payments made by the servicer to cover costs incurred from third-party services, such as appraisers or inspectors, required to maintain or value the collateral.
Definition of "Servicing Advances" for insurance premiums and escrow
This definition connects "Servicing Advances" to insurance premiums and escrow account shortfalls.
"Servicing Advances" refers to the payment made by the servicer to cover shortfalls in the borrower’s escrow account, including amounts for insurance premiums, property taxes, and other required expenses.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.