|
|
Abstract- A history of all transactions shown in the public records affecting a particular tract of land.
Abstract Plant- See Title Plant.
Acceleration Clause -
Allows the lender to speed up the rate at which your loan comes due or demand immediate payment of the entire outstanding balance of the loan should you default on your loan.
Adjustable Rate Mortgage (ARM)-
Mortgage loans under which the interest rate is periodically adjusted, in accordance with some market indicator, to more closely coincide with the current rates. The extent and number of these adjustments are agreed to at the inception of the loan.
Adjustment Period -
The length of time between interest rate changes on an ARM. For example: a loan with an adjustment period of one year is called a one year ARM, which means that the interest rate can change once a year.
Adverse Action - A denial of a loan in an amount and on terms acceptable to the borrower.
Adverse Possession- The possession, by one person, of land belonging to another in a manner deemed adverse to the interest of
the owner. In most states, by operation of law, title to the land becomes vested in such person after a fixed number of years if the owner fails to assert his or her rights.
Affidavit- A written statement made under oath before a notary public or other judicial officer
Agreement- A legally binding contract made between two or more persons.
ALTA (American Land Title Association)- The trade association of the title insurance industry, which has adopted certain
insurance policy forms to standardize coverage on a national basis.
Amortization- Payment to reduce the principal of a debt in regular, periodic installments.
Annual Percentage Rate (APR) -
The actual cost of credit to the borrower, including interest and certain other charges, expressed as a yearly rate and calculated over the life of the loan. A guide to compare the cost of loans.
Application -
A verbal or written request for an extension of credit. Usually a printed form on which the lender collects credit, income and debt information about a prospective borrower, plus facts about the property being used to secure the loan. A fee may be charged at the time of application.
Appraisal- A report from an independent third party detailing the estimated value of real estate.
Appurtenance- A right or privilege that is a part of the ownership of property, such as a right of way to a highway across the
land of another. Water rights are also an example.
Assessment-
(1) The valuation of real estate for purpose of taxes or special improvement charges. (2) The amount of taxes or special improvement charges. Special improvement charges are usually for the costs of streets, sidewalks, sewers, etc.
Assignment-
(1) The act of transferring an interest, such as a loan secured by a mortgage, from one person to another. (2) The instrument or paper by which one person transfers such ownership to another.
Assumption of mortgage -
A buyer's agreement to assume the liability under an existing note that is secured by a mortgage of deed of trust. The lender must approve the buyer in order for the loan to be assumed.
Attorney's Opinion- A statement by an attorney as to the validity of a title, arrived at after investigation of the history of
the title as recorded in the public records.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Balloon Note-
A form of promissory note that calls for the minimum payment of principal and the payment of interest at regular intervals. This type of note requires a substantial final payment, which represents all the principal.
Bankruptcy-
A proceeding in U.S. District Court wherein assets of an insolvent debtor are protected and distributed in an equitable manner.
Binder-
Sometimes called "preliminary certificate" or "commitment." (1) A preliminary report as to the condition of a title and a commitment to issue a title insurance policy in a certain manner when certain conditions are met. (2) A deposit in escrow of a small part of the purchase price of real estate as evidence of good faith and to bind an agreement to purchase.
Borrower - The person, sometimes referred to as the mortgagor, who obtains a mortgage loan.
Broker -
An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
Buydown -
When the lender and/or the home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires.
Back Title Letter- Also called "back title certificate" in some areas, and "starter" in others. When titles
previously have been examined up to a certain date by reliable examiners, title companies sometimes give subsequent examiners of such titles a letter that sets forth the condition of the title at the time of the
previous examination and authorizes them to begin their subsequent examination with the terminal date of the previous examination.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
CC&R'S (Covenants, Conditions, and Restrictions) -
A document the controls the use, requirements, and restrictions of a property.
CAP - The limit of how much an interest rate or monthly payment can change, either at each adjustment or over the life of the
mortgage.
Certificate of reasonable value (CRV) - A document that establishes the maximum value and loan amount for a VA guaranteed loan.
Certificate of Title- A certificate issued by a title examiner stating the condition of a title.
Chain-
In real estate measurements (surveying), a chain is 66 feet long or 100 links, each link being 7.92 inches. The measurement may change when used in fields other than surveying.
Chain of Title- The successive ownerships or transfers in the history of title to a tract of land.
Claim- An adverse right or interest asserted by one party against another or against an insurer or indemnitor. Claims may arise
from unpaid debts or taxes, as well as from hidden title defects such as fraud, forgery, missing heirs, etc.
Clear Title- Real property ownership free of liens, defects, encumbrances or claims.
Closing-
Also called "settlement." A meeting of all parties involved in a property transaction during which the transaction is consummated.
Closing or Settlement Costs -
Fees, plus the purchase price of the property, charged at closing which include but are not limited to lawyer's fees, title search and insurance, survey charges and fees to record the deed, mortgage and other documents.
Closing Statement -
The financial disclosure statement that account for all of the funds received and disbursed at the closing including deposits for taxes, hazard insurance, and mortgage insurance.
Clouded Title- An irregularity, possible claim or encumbrance that, if valid, would adversely affect or impair the title.
Coinsurance- Two or more policies of title insurance issued by different insurers, each covering a portion of the same risk,
which together provide total coverage of the risk.
Commitment-
Also called "binder." A document issued by a title insurance company that contains the conditions under which a policy of title insurance will be issued.
Condemnation- (1) The taking of private property for a public purpose, with compensation to the owner under the right of
eminent domain. Governmental units, railroads and utility companies have the right to condemn and take private property. (2) The destruction by government of private property that imperils the life, health or safety
of the public.
Construction Loan -
A short term loan for financing the cost of construction. The lender advances funds to the builder at periodic intervals as the work progresses.
Contingency Clause -
A provision in some ARM's to convert to a fixed rate loan, usually after the first adjustment period.The new fixed rate is generally set at the prevailing interest rate for fixed rate mortgages. This conversion feature may be an extra cost.
Conventional Loan- A loan secured by a mortgage or deed of trust for which the loan-to-value ratio is within an acceptable
range for a particular lending institution.
Conveyance- The transfer of title to property from one person to another.
Covenant- A formal agreement or contract between two parties in which one party gives the other certain promises and
assurances, such as covenants of warranty in a warranty deed.
Counter-Offer - an offer made by the lender to grant credit other than in the amount or terms requested by the applicant.
Courtesy- A right that a husband has in his wife's property at her death. It does not exist in all states.
Conventional Loan - A mortgage not insured by FHA or guarantee by the VA or Farmers Home Administration (FmHA).
Credit Report -
The ratio, expresses as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/VA loans)or gross monthly income (Conventional loans).
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Dedication- The setting aside of certain land by the owner and declaring it to be for public use. Examples:
streets, sidewalks and parks.
Deed of Trust - In many states, this document is used in place of a mortgage to secure the payment of a note.
Deed Restriction-
A covenant contained in a deed imposing limits on the use or occupancy of the real estate or the type, size, purpose or location of improvements to be constructed on it.
Default - Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage.
Defect- A blemish, imperfection or deficiency. A defective title is one that is irregular and faulty.
Deferred Interest - See Negative Amortization.
Delinquency - Failure to make payments on time. This can lead to foreclosure.
Department of Veterans Affairs (VA) -
An independent agency of the Federal Government which guarantees long-term, low-or-no-down payment mortgages to eligible veterans.
Depreciation- Loss in value occasioned by ordinary wear and tear, destructive action of the elements, or functional or economic
obsolescence.
Devise- A gift of real estate made by a will.
Discount Points -
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount(e.g. two points on a $100,000 mortgage would cost $2,000).
Dominant Estate- The property for the benefit of which a right-of-way easement exists across another's adjoining piece of land
is said to be the dominant estate. The land across which the easement runs is said to be the servient estate.
Dower- A right that a wife has in her husband's property at the time of his death. Does not exist in all states.
Down Payment -
Money paid to make up the difference between the purchase price and mortgage amount. Down payments usually are 10 percent to 20 percent of the sales price on Conventional loans, and no money down up to 5 percent on FHA and VA loans.
Due on sale clause -
An acceleration clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Earnest Money -
Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment.
Easement - A right to use all or part of the land owned by another for a specific purpose. An easement may, for example,
entitle its holder to install and maintain sewer or utility lines.
Eminent Domain -
The right of a government to take privately owned property for public purposes under condemnation proceedings subject to payment of its fair market value.
Encroachment - Any building, improvement or structure located on one property (such as a wall, fence or driveway) that intrudes
upon the property of another.
Encumbrance - Any interest, right, lien or liability attached to a parcel of land (such as unpaid taxes or an unsatisfied
mortgage) that constitutes or represents a burden or charge upon the property.
Equity- The market value of real property, less the amount of existing liens.
Escheat - The reversion of property to the state when an owner dies leaving no legal heirs, devisees or claimants.
Escrow Account -
Money held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition. Or collected in advance by the lender, usually on a monthly basis, for the payment of real estate taxes, betterment's and/or insurance.
Estoppel -
A legal restraint that stops or prevents a person from contradicting or reneging on his previous position or previous assertions or commitments.
Examinationlain -
The study of the instruments and muniments incident to a chain of title to determine their effect and condition in order to reach a conclusion as to the status of the title.
Exception-
A provision in a title insurance binder or policy that excludes liability for a specific title defect or an outstanding lien or encumbrance.
Execute - To sign a legal instrument. A deed is said to be executed when it is signed, sealed, witnessed and delivered.
Equal Credit Opportunity Act - Federal and state laws that prohibit discrimination in the granting of credit based on race,
color, religion, national origin, sex, marital status, age, or whether a person is receiving public assistance or alimony.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Fannie Mae (FNMA)- Federal National Mortgage Association. A private corporation dealing in the purchase of
first mortgages.
Farmers Home Administration (FmHA) -
Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere.
Fee Simple Deed -
The absolute ownership of a parcel of land. The highest degree of ownership that a person can have in real estate, which gives the owner unqualified ownership and full power of disposition.
Federal Home Loan Mortgage Corporation (FHLMC) -
Also called Freddie Mac, is a quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers.
Federal National Mortgage Association (FNMA) -
A.K.A. Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by the FHA or guaranteed by VA, as well as conventional home mortgages.
FHA (Federal Housing Administration) -
A federal agency that insures first mortgages, enabling lenders to lend a very high percentage of the sale price.
FHA Mortgage Insurance -
Requires a small fee (up to 3 percent of the loan amount) paid at closing or a portion of this fee added to each monthly payment of an FHA loan to insure the loan with FHA. On a 9.5 percent $75,000 30-year fixed-rate FHA loan, this fee would amount to either $2,250 at closing or an extra $31 a month for the life of the loan. In addition, FHA mortgage insurance requires an annual fee of 0.5 percent of the current loan amount, the more years the fee must be paid.
Finance charge -
The total cost a borrower must pay, directly or indirectly, to obtain credit according to regulation"Z".
Fixed Rate Mortgage -
a conventional mortgage loan with a set interest rate and equal monthly payments for the entire term of the loan. Lender - the entity or person, sometimes referred to as the mortgagee, who offers the mortgage loan.
Fixtures- Personal property that is attached to real property and is legally treated as real property while it is so attached.
Examples: medicine cabinets, window blinds and chandeliers.
Foreclosure -
A legal proceeding in which real estate secured by a mortgage or deed of trust is sold to satisfy the underlying debt.
Forgery - The fraudulent signing of another's name to an instrument such as a deed, mortgage or check.
Freddie Mac (FHLMC) -
Federal Home Loan Mortgage Corporation. A federal agency that purchases both conventional and federally insured first mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Ginnie Mae (GNMA) -
Government National Mortgage Association. A federal association working with the FHA that offers special assistance in obtaining mortgages and purchases mortgages in the secondary market.
Graduated Payment Mortgage -
A residential mortgage with monthly payments that is stated at a low level and increased at a predetermined rate.
Grant - To bestow or confer, with or without compensation, a gift such as land or money by one having control or authority over
the gift.
Grantee - One to whom a grant is made.
Grantor- One who makes a grant.
Government National Mortgage Association (GNMA) -
Also known as Ginnie Mae, provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.
Gross Monthly Income -The total amount the borrower earns per month, before any expenses are deducted.
Guarantee -
A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Hazard Insurance -
A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.
Hereditaments- Any and all kinds of estates, interest and rights in real estate that can be inherited.
Homeowners Insurance-
Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc., depending on the terms of the policy. Also includes coverage such as personal liability and theft away from home.
Housing Expenses-to-Income Ratio -
The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her net effective income (FHA/VA loans) or gross monthly income (Conventional loans).
Home inspection report -
A qualified inspector's report on a property's overall condition. The report usually includes an evaluation of both the structure and mechanical systems.
Home warranty plan -
Protection against failure of mechanical systems with the property. Frequently includes plumbing, electrical, heating systems, and installed appliances.
HUD (Department of Housing and Urban Development) -
The federal department responsible for the major housing programs in the United States.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Index- (1) An alphabetical listing in the public records of the names of parties to recorded real estate
instruments together with the book and page number of the record. (2) The listing in abstract and title plants of recorded real estate instruments in groups according to land descriptions, known as a geographic
index. (3) The alphabetical listing in abstract and title plants, by names of the parties, of all recorded instruments that affect but do not describe particular real estate, such as judgments, powers of attorney,
wills and probate proceedings. Such indexes are known by various names, such as "general index," "judgment index" and "name index."
Instrument- Any written document having a legal effect.Impound - That portion of a borrower's monthly payments held by the
lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves.
Investor - Money source for a lender
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Joint tenancy -
An equal, undivided ownership of property by two or more persons. Upon death of any owner, the survivors take the descedent's interest on the property.
Judgment - The determination of a court regarding the rights of parties in an action. A judgment of debt on a property owner
can create a lien on all of that owner's land within a certain jurisdiction.
Jumbo Loan -
A loan which is larger (more than $203,150)than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.
Junior Mortgage- A mortgage lower in lien priority than another.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Leasehold - The right to possession and use of land for a fixed period of time. The lease is the agreement that
creates the right.
Lessee - A tenant holding a leasehold.
Lessor - A landlord; one who gives a leasehold to a lessee.
License - Permission to go upon or use the land of another, the permission being a personal privilege and not constituting an
interest in the land.
Lien - A monetary charge imposed on a property, usually arising from some debt or obligation.Lien Waver- Also called
"waiver of liens." A waiver of mechanics' lien rights, signed by contractors or subcontractors.
Link - In surveying, a length of 7.92 inches.
Lis Pendens - A legal notice intending to bind third parties of litigation claiming an interest in real estate.
Loan commitment - A written promise to make a loan for a specified amount with specific terms.
Loan Policy-
Also called "mortgage policy." A title insurance policy insuring a mortgagee, or beneficiary under a deed of trust, against loss caused by invalidity or unenforceability of a lien, or loss of priority of the mortgage or deed of trust.
Loan-to-Value Ratio -
the percentage comparison between the unpaid principal balance of the mortgage and the sales price or the appraised value of the property, whichever is lower.
Lot - Generally, any portion or parcel of real property. Usually refers to a portion of a subdivision.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Margin -
The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
Market Value - The average of the highest price that a buyer, willing but not compelled to buy, would pay and the lowest price
a seller, willing but not compelled to sell, would accept.
Mechanic's Lien - A lien on real estate, created by operation of law, that secures the payment of debts due to persons who
perform labor or services or furnish materials incident to the construction of buildings and improvements on the real estate.
Metes and Bounds - A land description in which boundaries are described by courses, directions, distances and monuments.
Mortgage - A conditioned pledge of property to a creditor as security for the payment of a debt.
Mortgage Insurance-
Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sale price.
Mortgagee - The holder of a mortgage. The party to whom a mortgage is made, generally the lender.
Mortgagee Policy- See Loan Policy.
Mortgage Review Board -
A voluntary board consisting of an equal number of lenders and community representatives who will review the residential mortgage loans denied by participating lenders where the applicants believe the denial was based on the location of the property.
Mortgagor - A person who mortgages property. A person who executes a mortgage, generally the property owner.
Multiple Listing -
The pooling in a central bureau of listings of properties for sale. These listings are held individually by members of a group of real estate brokers, with the agreement that any member of the group may sell the properties and, in the case of a sale, the commission will be divided between the broker making the sale and the broker who filed the listing.
Muniments of Title - Written evidence (documents) that an owner possesses to prove his or her title to property.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Negative Amortization -
Negative amortization occurs when your monthly payments are not large enough to pay all the interest due on the loan. The interest that is not covered is added to the unpaid principal balance, which means that even after several payments you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments that are not high enough to cover the interest.
Net Effective Income - The borrower's gross income minus federal income tax.
Non-Assumption Clause -
A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender.
Note - Also called "promissory note." A written promise to pay a sum of money, usually at a specified interest rate,
at a stated time to a named payee.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Origination Fee - A fee or charge for establishing a new loan. PITI Principal, interest, taxes and insurance.
Owner's Policy -
A policy of title insurance insuring an owner of real estate against loss occasioned by defects in, liens against or unmarketability of the owner's title.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
PITI - Principal, interest, taxes, and insurance. Also called monthly housing expense.
Plat - Also called "plat map." A map dividing a parcel of land into lots, as in a subdivision. A plat book contains
the plat maps for a given area.
Point - Also called "commission points" or "discount points." One percent of the amount of the loan.
Power of Attorney - A legal document authorizing one person to act on behalf of another.
Premium - The amount payable for an insurance policy.
Prepaids -
Expenses necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.
Prepayment - A privilege in a mortgage permitting the borrower to make payments in advance of their due
Prepayment penalty - A fee charged to a mortgagor who pays a loan before it is due.
Prescriptive Easement - A right to use another's property that is not inconsistent with the owner's rights and that is acquired
by an open, notorious, adverse and continuous use for the statutory period, for example 20 years.
Principal - (1) A sum of money owed as a debt on which interest is payable. (2) A person who empowers another to act as his
representative or agent. (3) The person having prime responsibility for an obligation as distinguished from one who acts as a surety or endorser.
Private Mortgage Insurance (PMI) -
In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment-as low as 5 percent in some cases. With the smaller down payments loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance willrequire an initial premium payment of 1.0 percent to 5.0 percent of your mortgage amount and may require an additional monthly fee depending on your loan's structure. On a $75,000 house with a 10 percent down payments, this would mean either an initial premium payment of $2,025 to $3,375, or an initial premium of$675 to $1,130 combined with a monthly payment of $25 to $30.
Point -
A non-refundable sum of money, equal to one percent of the principal amount of a mortgage, charged by the lender to cover certain costs of making a loan. The number of points that may be charged is limited by law.
Purchase Money Mortgage -
A mortgage given by a purchaser to a seller on the subject property to secure payment of a part of the purchase price.
Purchase Agreement -
A written document in which the purchaser agrees to by certain real estate and the seller agrees to sell certain real estate under stated terms and conditions. Also called a sales contract, earnest money contract, or agreement for sale.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Quit Claim Deed - A deed that does not imply that the grantor holds title, but that surrenders and gives to the
grantee any possible interest or rights that the grantor may have in the property.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Rate -
Lock Agreement/interest Rate Commitment - a written agreement by which a lender will hold an interest rate on a mortgage for a specified period of time. The terms and conditions of a rate lock agreement vary from lender to lender.
Realtor -
A real estate broker or associate active in a local real estate board affiliated with the National Association of Realtors.
Real Estate - Also called "real property." (1) Land and anything permanently affixed to the land, such as building,
fences and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other such items that would be personal property if not attached. (2) May refer to rights in real property
as well as the property itself.
Real Estate Settlement Procedures Act (RESPA) -
A federal law that requires a good faith estimate of closing costs required to be given on certain first mortgages.
Recording - The noting in a public office of the details of a legal document - such as a deed or mortgage - affecting the title
to real estate. When such an instrument is properly recorded, it is considered to be a matter of public record. Legally, that means that all subsequent purchasers are deemed to have constructive knowledge of that
information.
Reinsurance - A contractual relationship between two insurance companies under which one insurer assumes a portion of the risk
of the insurance policy written by the other.
Release -
(1) To relieve from debt or security or abandon a right, such as the release of a mortgage lien from a part or all of the land mortgaged. (2) The instrument effecting a release.
Renegotiable Rate Mortgage (RRM) - A loan in which the interest rate is adjusted periodically. See Adjustable Rate Mortgage
Restrictions - Limitations on the use of property imposed or created by deeds or other documents in the chain of title. A
restriction, for example, may prohibit the placement of trailer or the construction of a commercial structure on the property.
Reverse Annuity Mortgage (RAM) -
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as security.
Right of Rescission - State and federal laws that allow consumers who refinance first mortgages and certain second mortgages to
cancel their contract and receive a full refund. This must take place within three business days following the closing, or following the delivery of the required information and rescission forms and disclosures,
whichever occurs last.
Riparian Rights - The rights of owners of lands bordering watercourses which relate to the water and its use.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Secondary Mortgage Market - Investors who purchase residential mortgages originated by lenders.
Sale Agreement - A contract entered into between a buyer and seller, setting forth the terms, provisions and conditions of a
sale of real estate.
Sale and Leaseback - The sale of an asset to a buyer who immediately leases it back to the seller.
Search -
A careful exploration and perusal of the public records in an effort to find all recorded instruments relating to a particular chain of title.
Second Mortgage - A mortgage ranking in priority immediately below a first mortgage.
Subordination - The act or process by which a person's rights are ranked below the rights of others. For example, a second
mortgagee's rights are subordinate to those of the first mortgagee.
Surety - (1) A person who agrees to be responsible for a debt or obligation of another. (2) The pledge or agreement by which
one undertakes responsibility for the debt or obligation of another
Servicing -
All the steps and operations a lender perform to keep a loan in good standing, such as collection of payments, payment of taxes, insurance, property inspections and the like.
Shared Appreciation Mortgage (SAM) -
A mortgage in which a borrower receives a below-market interest rate in return for which a lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to mortgages where the borrower shares the monthly principal and interest payments with another party in exchange for a part of the appreciation.
Survey -
A measurement of land, prepared by a registers land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any building.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Tenancy in common - A type of joint ownership of property by two or more persons with no right of survivorship.
Term Mortgage - See Balloon Payment Mortgage.
Title - (1) A combination of all the elements that constitute the highest legal right to own, possess, use, control, enjoy and
dispose of real estate or an inheritable right or interest therein. (2) The rights of ownership recognized and protected by the law.
Title Covenants -
Covenants ordinarily inserted in conveyances and in transfers of title to real estate for the purpose of giving protection to the purchaser against possible insufficiency of the title received. A group of such covenants known as "common law covenants" includes: covenants against encumbrances; covenants for further assurance (in other words, to do whatever is necessary to rectify title deficiencies); covenants of good right and authority to convey; covenants of quiet enjoyment; covenants of seisin; covenants of warranty. (See Warranty or Covenant.)
Title Defect
- (1) Any possible or patent claim or right outstanding in a chain of title that is adverse to the claim of ownership. (2) Any material irregularity in the execution or effect of an instrument in the chain of title.
Title Insurance Policy - A contract of title insurance under which the insurer, in keeping with the terms of the policy, agrees
to indemnify the insured against loss arising from claims against the insured interest.
Title Plant -
Also called "abstract plant" in some areas. A geographically filed assemblage of title information that helps in expediting title examinations, such as copies of previous attorneys' opinions, abstracts, tax searches and copies or take-offs of the public records.Title - A document that gives evidence of an individual's ownership of property.
Title Search -
An examination of legal records to check the validity and completeness of the title to the property. The title search should uncover any liens, overdue assessments or other claims against the property.
Truth-in-Lending -
Federal and state laws that require lenders to provide borrowers with full disclosure of the true cost of a loan and easy-to-understand information about the annual percentage rate and terms of the loan.
Two-Step Mortgage -
A mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10 years), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan, due within 30 days notice at the end of seven or 10 years. Also called"Super Seven" or "Premier" mortgage.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Underwriter - An insurance company that issues insurance policies to the public or to another insurer.
Urea Formaldehyde Foam Insulation (UFFI) Notice -
A state law requiring a borrower or seller to disclose to a lender the absence or presence of UFFI and the formaldehyde level in a dwelling.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Variable Interest Rate - Also called "flexible interest rate." An interest rate that fluctuates as
the prevailing rate moves up or down. In mortgages, there are usually maximums as to the frequency and amount of fluctuation.
Veterans Administration (VA) Loans-
Housing loans to veterans by banks, savings and loans, or other lenders that are guaranteed by the Veterans Administration, enabling veterans to buy a residence with little or no down payment.VA Loan - A loan that is guaranteed by the Veterans Administration and made by a private lender.
VA Mortgage Funding Fee - A premium of up to 2 percent (depending on the size of the down payment) paid on a VA-backed loan.
Variable Rate Mortgage (VRM) - See Adjustable Rate Mortgage.
Verification of Deposit (VOD) -
A document signed by the borrower's financial institution verifying the status and balance of his/her financial accounts.
Verification of Employment - A document signed by the borrower's employer verifying his/her position and salary.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Waiver - The voluntary and intentional relinquishment of a known right, claim or privilege.
Warranty- In a broad sense, an agreement or undertaking by a seller to be responsible for present or future losses of the
purchaser occasioned by deficiency or defect in the quality, condition or quantity of the thing sold. In a stricter sense, the provision or provisions in a deed, lease or other instrument conveying or transferring
an estate or interest in real estate under which the seller becomes liable to the purchaser for defects in or encumbrances on the title. (See Title Covenants.)
Will - A testamentary disposition of property, usually in a form prescribed by law, that takes effect upon death.
Wraparound -
Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top.
|
|
A B
C D E
F G
H I J
L M
N O P
Q R
S T U
V W
Z
|
|
Zoning - Laws passed by local governments regulating the size, type, structure, nature and use of land.
|
|
|
|
