Exoneration

DEFINITION of 'Exoneration'

In a general sense, this term means to free from blame or guilt, such as when a criminal is proven innocent. In the financial realm, exoneration usually means to relieve one of a financial obligation or duty. This can apply in many different areas of finance, such as taxation or mortgages.

BREAKING DOWN 'Exoneration'

The various financial aid programs offered by the government to provide relief to struggling homeowners are forms of exoneration. Delinquent mortgage holders will be exonerated of their current obligations and reassigned new ones that they can manage more easily. A taxpayer who convices the IRS that he or she does not owe taxes that have been assessed is also exonerated from paying those taxes.

RELATED TERMS
  1. Obligation

    The responsibility to meet the terms of a contract. If an obligation ...
  2. Delinquent

    The failure to accomplish what is required by law or duty, such ...
  3. Taxpayer

    An individual or entity that is obligated to make payments to ...
  4. Taxation

    Taxation refers to the act of a taxing authority actually levying ...
  5. Innocent Purchaser For Value

    Someone who unknowingly purchases assets that have been involved ...
  6. Collateralized Mortgage Obligation ...

    A type of mortgage-backed security in which principal repayments ...
Related Articles
  1. Personal Finance

    Benefits Of Paying Off Your Mortgage

    Paying off your mortgage in a reasonable amount of time can result in financial security and freedom.
  2. Personal Finance

    Shopping for a mortgage in 2016? Use this tool first.

    As home-buying technology has progressed, the process of finding the best mortgages rates for 2016 can all be done online.
  3. Personal Finance

    Shopping for a mortgage in 2016? Use this tool first.

    As home-buying technology has progressed, the process of finding the best mortgages rates for 2016 can all be done online.
  4. Personal Finance

    Comparing Reverse Mortgages vs. Forward Mortgages

    Which one a homeowner chooses depends on where you are at this point in your life, personally and financially.
  5. Retirement

    Is A Reverse Mortgage Right For You?

    Home equity can be a viable financing alternative, but it depends on how you spend the funds.
  6. Retirement

    Should Retirees Still Have Mortgages?

    Identify the pros and cons of keeping a mortgage into retirement, and understand in which situations it is beneficial not to pay off a mortgage.
  7. Personal Finance

    Calculating the Mortgage Interest Tax Deduction

    The amount of money you save by paying your mortgage off quickly will far exceed any benefit from the mortgage interest tax deduction.
  8. Financial Advisor

    Reverse Mortgages: Right for Clients? Not Often

    Reverse mortgages are a legitimate vehicle for folks age 62 and up to tap into the equity in their homes for other uses. Here's what to consider with them.
  9. Financial Advisor

    Should Your Retiring Clients Pay Off A Mortgage?

    Should your retiring clients pay off their mortgages? It's more complicated than 'yes' or 'no,' so here's a quick guide.
  10. Markets

    New 9/11 Reveal Brings Saudi Divestment Closer

    Member of 9/11 commission says there's more to Saudi Arabia's role than what the public knows.
RELATED FAQS
  1. Does an 84 year old who is on a fixed income have to file taxes?

  2. What is the process to take over a mortgage through a loan assumption?

    My landlord wants me to take over her mortgage.  ... Read Answer >>
  3. If my mortgage lender goes bankrupt, do I still have to pay my mortgage?

    Yes, if your mortgage lender goes bankrupt you do still need to pay your mortgage obligation. Sorry to disappoint, but there ... Read Answer >>
  4. Why is fiduciary duty so important?

    Find out why fiduciary duty is so important, including what this legal obligation entails and an example of how it can affect ... Read Answer >>
  5. What are the best ways to pay off my mortgage quickly?

    Learn how mortgage payments may be reduced and how to save thousands on mortgage loans by lowering the interest and principle ... Read Answer >>
  6. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ... Read Answer >>
Trading Center