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REAL ESTATE AND MORTGAGE TERMS:
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- In a legal sense, the solid part of the surface of the earth,
as distinguished from water; any ground, soil or earth whatsoever
regarded as the subject of ownership and everything annexted
to it, whether by nature, e.g., trees and everything in or on
it, such as minerals and running water, or annexed to it by
man; e.g., buildings, fences, etc. In an economic sense, land
consists of all those elements in the wealth of a nation which
is supposed to be furnished by nature as distinguished from
those improvements which owe their value to the labor and organizing
power of man.
- Installment plan for buying a house. It is used as an alternative
to obtaining a loan from a traditional, source such as a mortgage
banker or savings and loan.
- A penalty for failure to pay an installment on time.
- Hidden structural defect.
- A lease under which the lessee has the right to purchase the
property. The option may run for the length of the lease or
only for a portion of the lease period.
- An expanded and unique description of a property that is used
on legal documents, such as deeds and deeds of trust. Recorded
documents generally require a legal description.
- A general term encompassing all mortgages, and beneficiaries
under deeds of trust.
- A document that lenders prepare for the closing agent that
outlines the requirements for loan closing.
- One who possesses the right to use or occupy a property under
lease agreement.
- One who holds title to and conveys the right to use and occupy
a property under lease agreement.
- A formal method of stating that a prospective developer, buyer
or lessee is interested in property.
- An encumbrance against property for for the payment of debt;
a lien may be a mechanic's lien, mortgage, unpaid taxes or judgment.
- An estate in real property for the life of a living person.
The estate then reverts back to the grantor or to a third party.
- A partnership consisting of one or more general partners who
conduct the business and are responsible for losses, and one
or more special partners, who contributes capital and are liable
only to the amount contributed.
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- An amount of money a borrower may obtain from a lender without
a special credit check. Borrower is typically charged a variable
rate of interest on the amount of the credit line outstanding.
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- A public notice that litigation is pending on a property.
- A record of property for sale by a broker who has been authorized
by the owner to sell. Also used to denote the property so listed.
- Agreement between a property owner and a real estate broker,
authorizing the broker to find a buyer for the property. If
the sale is consummated, the listing broker will be paid a fee.
- Fees that borrowers pay (sometimes seller will pay for borrower)
that adjust to the yield requirement of the investor. Loan discount
denotes an investor yield requirement higher than the note rate.
Loan premium denotes an investor yield requirement lower than
the note rate.
- Guarantee from a lender that a borrower will receive the interest
rate in effect at the time of loan application.
- A person that helps borrowers through the loan selection,
processing, and closing of a mortgage loan. Loan officers can
be paid a commission or salary for their services and can work
for mortgage brokers, mortgage bankers, or depository institutions.
- The cost to obtain a loan that is paid to the originating
lender or broker.
- The information regarding a borrower and property necessary
which is the basis for a lender's credit decision to extend
or deny credit.
- The amount of a loan to the value or selling price of real
property.
- The function of collecting loan payments, managing the property
tax and insurance escrows, foreclosing on defaulted loans and
remitting payments to the investor/beneficiary.
- The ratio of the mortgage loan amount to the property's appraised
value or selling price, whichever is less.
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- Loans that have a streamlined approval process and require
less documentation to close.
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GLOSSARY:
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