A summary; an abridgment. Before the use of photostatic copying public records were kept by abstracts of recorded documents.
A compilation of the recorded documents relating to a parcel of land from which an attorney may give an opinion as to the condition of title. Still in use in some states, but giving way to the use of title insurance.
Provision in a mortgage document stating that if a payment is missed or any other provision is violated the whole debt becomes immediately due and payable.
A measure of land equal to 43,560 square feet.
Formal declaration before a public official that one has signed a document. Prior to recording real estate legal documents, such as grant deeds and deeds of trust, a Notary Public acknowledges the person's signature on the document.
A court action to establish ownership of real property. Although technically not an action to remove a cloud on title, the two actions are usually referred to as "Quiet Title" actions.
Adjustable Rate Mortgage (ARM)
A mortgage where the interest rate is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with market conditions. The rate of interest is the sum of the index plus a margin ( the margin remains fixed for the life of the loan). Most ARMs have periodic interest rate and payment caps, as well as a life cap. ARM's may also be referred to as AML's or VRM's.
Person authorized to act on behalf of another in dealings with third parties.
An agreement between parties for the sale of real estate. In some states it is synonymous with a Purchase Agreement or Land Contract. In Texas it is known as an Earnest Money Contract.
Provision in a mortgage document stating that the loan must be paid in full if ownership is transferred.
Monthly alimony and child support if received. You need 3 years of continuous income of either type or it will not be counted toward qualifying income.
Alimony, Child Support or Separation Maintenance
If you showed that you paid alimony and child support in the Other Income and Expense section, be consistent.
American Land Title Association
Title policy that assures a lender that it has the proper rights as the beneficiary on a mortgage loan.
Gradual payment of a debt through regular installments that cover both interest and principal.
A measure of the total cost of credit (interest as well as other recurrring charges) expressed as a yearly percentage rate. All lenders apply the same rules in calculating the annual percentage rate, giving consumers a good basis for comparing the cost of loans.
Appraisal and credit report fees
these fees are generally collected by the lender and paid to outside companies performing the services.
An option of the value of a property at a given time, based on facts regarding the location, improvements, etc., of the property and surroundings.
Estimate of real estate value, presumably by an expert. An appraisal evaluates the property at a given time based on facts regarding the location, improvements, neighborhood and comparable sales. Generally, the value is based on three approaches: cost, market and income.
Increase in value or worth of property.
Payment made after it is due is in arrears. Interest is said to be paid in arrears since it is paid to the date of payment rather than in advance.
A clause that is sometimes used in the transfer of property. It means that the present property is being transferred with no guarantee or warranty provided by the seller.
The total assessed value of all property in a given assessment district.
Value placed on property as a basis for levying property taxes; not identical with appraised or market value.
A local tax levied against a property for a specific purpose, such as a sewer or street lights.
Transfer of a contract from one party to another.
New owner assumes the responsibility for repaying an existing mortgage. Both FHA and VA loans are fully assumable. Some adjustable rate mortgages may be partially assumable, but the new owners may be required to re-qualify for the loan.
A home that has one or more common walls adjoining another home. Condominiums and row houses are attached homes.