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Volume III | Chapter 2 23 EQUITY

The money value of a property beyond any mortgage or liabilities existing on it. The fair market value less encumbrances. Encumbrances are determined by the number of scheduled monthly payments, including interest owed, that remain in a loan agreement (this is not the same as the “payoff” amount, which indicates the amount that could currently be paid to erase the debt). See Chapter 5, ALL RESOURCES.