DEFECTIVE TITLE
Property that has a public record of encumbrance like lien, mortgage or judgment. Some may claim to the property or asset and the title cannot be legally transferred to another party because of Defective title. For example, a homeowner cannot sell a home if there is an outstanding tax lien on the property. That lien would first have to be cleared before any action can be taken on the property. Because the property or asset cannot be legally transferred to another party, the title is considered to be unmarketable. If the title holder wants to be able to do anything, the encumbrances must first be taken care of.
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Sample Selection Bias
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Ratio determining the default risk of a potential homebuyer if he would purchase a home using multiple mortgages. In general, creditors are willing ...
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