GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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Forfeiture


Synonyms:abandonment, forfeiture of property, property forfeiture
Filed Under: financial-banking, legal-contracts
Tags: banking, contract, legal
 

Definition of forfeiture

forfeiture
1. Something that is lost or surrendered as a penalty because of a fault, mistake, or failure to meet legal or contractual obligations.

Related Terms and Acronyms:

  • bankruptcy (BK)   A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
  • breach of contract (BOC)   Failure to abide by terms of a legal agreement without a legal excuse.
  • breach of warranty   A determination that a seller cannot pass clear title of property to a buyer.
  • consideration   A thing of value that is negotiated as part of a contract.
  • default   When a borrower fails to fulfill the obligations of a loan or lease.
  • delinquency   Failure to make mortgage payments when mortgage payments are due.
  • lapsed policy   A policy that is no long in effect due to missed payments, inaction or its term ending.
  • non-forfeiture clause   A clause that allows a policyholder to receive partial or full benefits and/or a refund of premiums if the policy lapses due to unpaid premiums.

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Important Tip on Credit Card Debt
Credit card interest rates average at around 18.9 per cent. You, like many other Canadians, may have over ten thousand dollars charged to your credit card, but, if you only make the minimum required monthly payment of 2 per cent ($200 the first month) that $10,000 in credit card debt will ultimately take more than 57 years and cost around 40,000 dollars to fully pay off.

Using a home equity loan will allow you to eliminate the high interest credit card (and by eliminate we mean cut up) and consolidate the debt to a low interest rate mortgage payment.