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.
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.
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.
The maximum interest rate the ARM may have during its life. The life cap is identified in the mortgage note.
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.
A notice that litigation is pending on a property.
Agreement between a property owner and a real estate owner, 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.