C D E F G
H I J K L M
N O P Q R
S T U V W
X Y Z
Press the HOME button to return to the top
The notes made by a title examiner based on his
examination of the land records. These notes are a concise summary of the
transactions affecting the property. The title agency produces a BINDER from
the information in the abstract.
A condition in a real estate financing instrument
giving the lender the power to declare all sums owing lender immediately due
and payable upon the happening of an event, such as the sale of the property,
or a delinquency in the repayment of the note.
The buildup of land from natural forces such as wind
As a verb, the confirmation by a party executing a
legal document that this is his signature and voluntary act. This confirmation
is made to an authorized officer of the Court or notary public who signs a
statement also called an acknowledgment.
43,560 square feet of land.
On an adjustable rate mortgage, the time between
changes in the interest rate and/or monthly payment, typically one, three or
five years, depending on the index.
A form/document added to a contract or agreement also
known as a Rider.
ADJUSTABLE RATE MORTGAGE (ARM)
A mortgage loan which bears interest at a rate
subject to change during the term of the loan.
A person appointed by the Court to settle the estate
of a person who dies without a will. The feminine form is Administratrix.
A claim made against land titled in another person
based on open, notorious and hostile possession and use of the land to the
exclusion of the titled owner.
A relationship in which the agent is given the
authority to act on behalf of another person (Principal).
A meeting of minds.
The right to the air space above the real property.
ALTA OWNER'S POLICY (American Land Title Association )
A type of title insurance policy issued by title
insurance companies which expands the risks normally insured against under the
standard type policy to include unrecorded mechanic's liens; unrecorded
physical easements; facts a physical survey would show ; water and mineral
rights; and rights of parties in possession, such as tenants and buyers rights
under unrecorded instruments.
A change to the correct or alteration to the original
document/agreement without changing its principal essence.
A loan to be repaid, interest and principal, by a
series of regular payments that are equal or nearly equal, without any special
balloon payment prior to maturity.
The periodic principal pay down of a loan.
ANNUAL PERCENTAGE RATE (A.P.R.)
Is a interest rate reflecting the cost of a mortgage
as a yearly rate. This rate is likely to be higher than the stated note rate
or advertised rate on the mortgage, because it takes into account point and
other credit cost. the APR allows home buyers to compare different types of
mortgages based on the annual cost for each loan.
An estimate of the value of property, made by a
qualified professional called an "appraiser". Most states require
licenses. Various lenders have their own lists of approved appraisers.
An attorney authorized by a title insurance company
to handle closings and render title opinions.
Anything attached to the land or used with it passing
to the new owner.
A local tax levied against a property for a specific
purpose, such as a sewer or street lights.
AS IS CONDITION
What you see is what you get. Seller does not make
any guarantees or warrantees as to the physical condition of the property.
To transfer interest.
One who receives an assignment or transfer of rights.
An assignment of a contract transfers the right to buy property.
The one who assigns to another person.
The agreement between buyer and seller where the
buyer takes over the payments on an existing mortgage from the seller.
Assuming a loan can usually save the buyer money since this is an existing
mortgage debt, unlike a new mortgage where closing cost and new, possibly
higher, market-rate interest charges will apply.
Seizure of property through Court process to repay a
ATTORNEY IN FACT
A type of agency relationship where one person holds
a POWER OF ATTORNEY allowing him to execute legal documents on behalf of
another. Decisions made by the attorney in fact are binding on the principal.
BALLOON (payment) mortgage
Usually a short-term fixed-rate loan which involves
small payments for a certain period of time and one large payment for the
remaining amount of the principal at a time specified in the contract.
A provision of Federal Law whereby a debtor
surrenders his assets to the Bankruptcy Court and is relieved of the future
obligation to repay his unsecured debts. A Trustee in Bankruptcy administers
the assets, selling them to pay as much of the debt as possible. If your
seller is in bankruptcy, the Trustee in Bankruptcy owns the property and is
the party to sign the contract and make decisions. After bankruptcy, the
debtor is discharged and his unsecured creditors may not pursue further
collection efforts against him. Secured creditors, those holding deeds of
trust or judgment liens, continue to be secured by the property but they may
not take other action to collect from the debtor.
A permanent reference mark for surveyors.
A person named to receive a benefit from a TRUST. A
contingent beneficiary has conditions attached to his rights, usually someone
else must die first.
A title insurance binder is the written commitment of
a title insurance company to insure title to the property subject to the
conditions and exclusions shown on the binder.
A mortgage covering at least two pieces of real
estate as security for the same mortgage. This sort of loan is more common for
commercial property or "special case" loans.
An amount of money, often posted with the Court, to
guarantee against loss as a result of a possible claim. For example, if there
is a LIEN against the property, the owner may post a bond and the lien is
removed from the property and the parties argue over the money rather than the
BREACH OF CONTRACT
Failure to perform provisions of a contract.
An individual in the business of assisting in
arranging funding or negotiating contracts for a client buy who does not loan
the money himself. Brokers usually charge a fee or receive a commission for
BUILDING RESTRICTION LINE
A required set-back a certain distance from the road
within which no building may take place. This restriction may appear in the
original plat of subdivision, restrictive covenants or by building codes and
When the lender and/or the home builder subsidized
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. These are sometimes used to qualify borrowers for a loan
amount that they would not otherwise qualify for but will be able to pay in
subsequent years as their income increases.
Market where there is more properties available for
sale than interested buyers.
Rules and regulations governing an association or
Profit earned from a sale of real estate.
A method used to estimate value of a property based
on the rate of return on investment.
The amount of cash derived over a certain period of
time from an income-producing property. The cash flow should be large enough
to pay the expenses of the income producing property (mortgage payment,
maintenance, utilities, etc.)
Buyer beware. The buyer must inspect the property and
satisfy himself it is adequate for his needs. The seller is under no
obligation to disclose defects but may not actively conceal a known defect or
lie if asked.
CERTIFICATE OF ELIGIBILITY
The document given to qualified veterans which
entitles them to VA guaranteed loans for homes, business, and mobile homes.
certificates of eligibility may be obtained by sending DD-214 (Separation
Paper) to the local VA office with VA form 1880 (request for Certificate of
CERTIFICATE OF OCCUPANCY
A certificate issued by a local governmental body
stating that the building is in a condition to be occupied.
CERTIFICATE OF SATISFACTION
A document signed by the Note holder and recorded in
the land records evidencing release of a DEED OF TRUST, MORTGAGE or other lien
on the property.
CERTIFICATE OF TITLE
A written opinion by an attorney setting forth the
status of title to the property as shown on the public records. The
certificate does not certify as to matters not of record and affords no
protection unless the author was negligent. Compare, TITLE INSURANCE.
CHAIN OF TITLE
The series of transactions from GRANTOR to GRANTEE as
evidenced in the land records.
A claim brought up on behalf of a group of people.
The meeting between the buyer, seller and lender or
their agents where the property and funds legally change hands. Also called
settlement. closing costs usually include an origination fee, discount points,
appraisal fee, title search and insurance, survey, taxes, deed recording fee,
CLOUD ON TITLE
An evidence of encumbrances.
Covenants, conditions, and restrictions.
The basic rules establishing the rights and
obligations of owners of real property within a subdivision or other tract of
land in relation to other owners within the same subdivision or tract and in
relation to an association of owners organized for the purpose of operating
and maintaining property commonly owned by the individual owners.
When more than one insurance company shares the risk
of a particular transaction or series of transactions. Lenders may require
co-insurance on large commercial projects.
Property pledged to secure a loan.
Taking of private property for a public use through
exercise of the power of EMINENT DOMAIN. The Constitution protects against
taking without fair compensation.
A system of individual FEE SIMPLE ownership of
portions (units) in a multi-unit structure, combined with joint ownership of
common areas. Each individual may sell or encumber his own unit. Compare,
Also called a Committee or Guardian, a person
designated by the Court to protect and preserve the property of someone who is
not able to manage their own affairs. Examples include the mentally
incompetent, minors and incarcerated persons.
A short term interim loan to pay for the construction
of buildings or homes. These are usually designed to provide periodic
disbursements to the builder as he progresses. These are generally done by
lenders with offices local to the site of the construction. This enables the
lender or their agent to monitor the progress of the construction.
A legally enforceable agreement between two parties.
CONTRACT FOR DEED
Also known as a Land Contract or Land Installment
Contract. A method of financing where title remains in the Seller's name until
the Buyer has paid the full purchase price. A Contract for Deed will normally
trigger the DUE ON SALE CLAUSE in a DEED OF TRUST or MORTGAGE but Veterans
Administration regulations specifically allow Contracts for Deed without
invoking the DUE ON SALE CLAUSE.
A mortgage not insured by FHA or guaranteed by the
A system of individual ownership of stock in a
corporation that in turn, owns the structure. Each owner has an exclusive
right to use his individual unit and must pay his portion of the debt
encumbering the entire building. Compare, CONDOMINIUM.
A method used by an appraiser to estimate replacement
cost of improvements less depreciation.
Ownership in the same land by more than one person.
See, TENANTS IN COMMON, JOINT TENANTS, TENANTS BY THE ENTIRETY.
A written agreement or restriction on the use of land
or promising certain acts. Homeowner Associations often enforce restrictive
covenants governing architectural controls and maintenance responsibilities.
However, land could be subject to restrictive covenants even if there is no
A report documenting the credit history and current
status of a borrower's credit standing.
The ratio, expressed as a percentage, which results
when a borrower's monthly payment obligation on long-term debts is divided by
his or her gross monthly income. See housing expenses-to-income ratio.
The written document conveying real property. The
Deed must be executed (signed), ACKNOWLEDGED, and DELIVERED to the Grantee.
Once recorded at the Courthouse, the original piece of paper is not needed to
convey title in the future.
DEED OF TRUST
A voluntary lien to secure a debt deeding the
property to Trustees who foreclose, sell the property at public auction, in
the event of default on the Note the Deed of Trust secures. Compare, MORTGAGE.
Failure to meet legal obligations in a contract,
specifically, failure to make the monthly payments on a mortgage.
When a mortgage is written with a monthly payment
that is less than required to satisfy the note rate, the unpaid interest is
deferred by adding it to the loan balance.
If the foreclosure sale does not bring sufficient
proceeds to pay the costs of sale and the note in full, the holder of the note
may obtain a judgment against the maker for the difference.
The final, unconditional and absolute transfer of a
DEED to the Grantee so that the Grantor may not revoke it. A Deed, signed but
held by the Grantor, does not pass title.
A spouse's interest in the property of a deceased
Money paid to make up the difference between the
purchase price and the mortgage amount.
Representation of opposing parties (buyer and seller)
at the same time in the same transaction. This situation most often refers to
cases where the Realtor is the agent for both parties.
DUE ON SALE CLAUSE
A clause in the DEED OF TRUST or
MORTGAGE < > that makes the loan non-assumable
by providing the note holder may call the loan immediately due and payable
upon a sale or conveyance of an interest in the property. The FNMA/FHLMC form
provides that a lease of more than three years or a lease with an option to
buy also triggers this provision.
A good faith deposit.
The right to use the land of another for a specific
limited purpose. Examples include utility lines, driveways, and INGRESS AND
EGRESS. Easements can be temporary or permanent.
The power of the state to take private property for
public use upon payment of just compensation.
The physical intrusion of a structure or improvement
on the land of another. Examples include a fence or driveway over the property
Any lien, liability or charge against a property.
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
Is a federal law that requires lenders and other
creditors to make credit equally available without discrimination based on
race, color, religion, national origin, age, sex, marital status or receipt of
income from public assistance programs.
The difference between the fair market value and
current indebtedness, also referred to as the owner's interest. The value an
owner has in real estate over and above the obligation against the property.
A form of joint ownership between an owner/occupant
and an owner/investor. The investor takes depreciation deductions for his
share of the ownership. The occupant receives a portion of the tax write-offs
for interest and taxes and a part of his monthly payment is treated as rent.
The co-owners divide the profit upon sale of the property. Compare, JOINT
Property that reverts to the state when an individual
dies without heirs and without a will.
A disinterested third party holds funds or documents
on behalf of others and subject to their instructions.
A person named in a will to carry out its terms and
administer the estate. The feminine form is Executrix. Compare, ADMINISTRATOR.
The absolute total interest in real property.
Compare, LIFE ESTATE, REVERSION.
FEDERAL HOME LOAN MORTGAGE CORPORATION
A affiliate of the Federal Home loan Bank which
creates a secondary money market in conventional residential loans and in FHA
and VA loans by purchasing mortgage loans from members of the Federal Reserve
System and the Federal Home Loan Bank Systems.
A relationship of trust and confidence between
principal and agent; lawyer and client; doctor and patient; etc..
Lenders record financing statements to evidence
personal property, such as a new furnace, siding or windows, is subject to a
An item of personal property attached to real
property so that it can not be removed without damage to the real property. A
FIXTURE becomes part of the real property.
The process by which a lender sells property securing
a loan in order to repay the loan. Under a DEED OF TRUST, foreclosure is by
public auction after appropriate advertisement. A MORTGAGE may require the
lender to obtain Court approval prior to sale.
FULLY INDEXED NOTE RATE
As related to adjustable rate mortgages, the index
value at the time of application plus the gross margin stated in the note.
GENERAL WARRANTY DEED
The Grantor warrants title against all claims.
The person receiving an interest in property.
The person granting, selling or giving up an interest
in property. Compare, GRANTEE.
GRADUATED PAYMENT MORTGAGE (GPM)
A type of flexible-payment mortgage where the
payments increase for a specified period of time and then level off.
Income before expenses
With regard to an adjustable rate mortgage, an amount
expressed as percentage points, stated in the note which is added to the
current index value on the rate adjustment date to establish a new note rate.
The owner grants a long term lease of the land
(usually 99 years) and allows the lessee to build and use the land as agreed.
At the end of the term, the land and all improvements revert to the owner.
One appointed by the Court to administer the affairs
of a minor. A guardian is appointed to protect one's interest in a
particular legal action. See, CONSERVATOR.
A form of insurance in which the insurance company
protects the insured from specified losses, such as fire, windstorm and the
A gap or space left between two parcels of land and
not included in the legal description of either parcel. Similar terms are Gaps
A declaration filed in the land records that an
individual is asserting his homestead exemption. That exemption allows one to
protect some assets (amount varies by state) against the claims of creditors.
The ratio, expressed as a percentage, which results
when a borrower's housing expenses are divided by his/her gross monthly
income. See debt-to-income ratio.
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.
A method used by an appraiser to estimate the value
of a property by calculating it's generated income.
A protection against actual loss or damage as a
result of the matter mentioned. An indemnity is not an absolute guarantee that
something won't happen, it states the terms under which an actual loss will be
A published interest rate against which lenders
measure the difference between the current interest rate on an adjustable rate
mortgage and that earned by other investments (such as one- three-, and
five-year U.S. Treasury security yields, the monthly average interest rate on
loans closed by savings and loan institutions, and the monthly average
costs-of-funds incurred by savings and loans), which is then used to adjust
the interest rate on an adjustable mortgage up or down.
INGRESS AND EGRESS
Applied to EASEMENTS, meaning the right to go in and
out over a piece of property but not the right to park on it.
Title subject to a defect or claim which a title
insurance company is willing to insure against. Compare, MARKETABLE TITLE.
INSURED CLOSING LETTER
An Indemnity given to a lender from a title insurance
company, agreeing to be responsible if the closing agent does not follow the
lender's instructions or misappropriates the loan proceeds. Lender's usually
require an insured closing letter be on file for each settlement.
A construction loam made during completion of a
building or a project. A permanent loan usually replaces this loan after
INITIAL NOTE RATE
With regard to an adjustable rate mortgage, the note
rate upon origination. This rate may differ from and is usually less than the
fully indexed rate.
An estate without a Will. Compare, TESTATE
JOINT OWNERSHIP AGREEMENT
An agreement between owners defining their rights,
ownership, monetary obligations and responsibilities. This could be between
and investor and an occupant or the occupants. If an investor is involved, the
investor does not take depreciation deductions and none of the occupant's
payment is deemed rent for tax purposes. Compare, EQUITY SHARING.
Two or more persons own a property. Joint tenants
with the common law right of survivorship means the survivor inherits the
property without reference to the decedent's will. Creditors may sue to have
the property divided to settle claims against one of the owners. Compare,
TENANTS IN COMMON, TENANTS BY THE ENTIRETY.
A judgment is a lien against all real property owned
by the judgment debtor in the county where the judgment is docketed
a loan which is larger (more than $207,000 as of
1/1/96) 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
Mortgage of lesser priority than the prior recorded
See, CONTRACT FOR DEED.
LEASE HOLD ESTATE
Tenants right of possession for a specific period of
time under a lease agreement. (Common in Hawaii.)
A claim or charge against property. Property is said
to be encumbered by a lien and the lien must be removed to clear title.
With regard to an adjustable rate mortgage, a ceiling
the note rate cannot exceed over the life of the loan.
The right to use, occupy and own for the life of an
individual. Compare, FEE SIMPLE.
LOAN-TO-VALUE RATIO (LTV)
The relationship between the amount of the mortgage
loan and the appraised value of the property expressed as a percentage.
Recorded document showing a pending litigation filed
in the court. These show up on the preliminary title report and must be dealt
with when transferring ownership or refinancing.
The loan application is the source of information on
which the lender bases a decision to make the loan; defines the term of the
loan, gives the name(s) of the borrower(s) , place of employment, salary, bank
accounts and credit references, and describes the real estate that is to be
mortgaged. It also stipulates the amount of the loan being applied for and the
The age at which a person may handle his own affairs.
The amount a lender adds to the index on an
adjustable rate mortgage to establish the adjusted interest rate.
Title without defects or claims so as to be readily
accepted without fair or reasonable doubt. Compare, INSURABLE TITLE.
The highest price that a buyer would pay and the
lowest price a seller would accept on a property. Market value may be
different from the price a property could actually be sold for at a given
The right of an unpaid contractor, laborer or
supplier to file a lien against property to recover the value of his work
METES AND BOUNDS
A means of describing land by directions and
distances rather than reference to a lot number. Generally used when land has
not been subdivided into lots.
A voluntary lien filed against property to secure a
debt, usually a loan. To foreclose, the lender must often institute a court
action and the borrower may have the right to reclaim the property after
foreclosure. Compare, DEED OF TRUST.
Money paid to insure the mortgage when the down
payment is less than 20 percent. See private mortgage insurance, FHA
The borrower or homeowner
Occurs when your monthly payments are not large
enough to pay all the interest due on the loan. This unpaid interest is added
to the unpaid balance of the loan. the danger of negative amortization is that
the home buyer ends up owing more than the original amount of the loan.
NET EFFECTIVE INCOME
The borrower's gross income minus federal income tax.
The difference between total assets and total
NON ASSUMPTION CLAUSE
A statement in a mortgage contract forbidding the
assumption of the mortgage without the prior approval of the lender. Note: The
signed obligation to pay a debt, as a mortgage note.
A loan in default, usually referred by lenders to
A written promise to pay a certain sum of money at a
certain time. A negotiable note starts "Pay to the order of" and is
transferable by endorsement similar to a check.
One authorized by law to acknowledge and certify
documents and signatures.
A proposal; after acceptance it becomes a contract.
A right given for a consideration to keep an offer to
purchase or lease open for specific time.
The forced division of land among parties who were
formerly co-owners. A partition suit may ask to divide the land or if that is
not practical, sell the land and divide the proceeds.
A total balance, amount of a full payment on existing
loan or lien.
A map showing the division of piece of land with
lots, streets and, if applicable, common area.
A lot connected to a public street by a narrow strip
of land. Usually several adjacent pipestems are combined to form one driveway
with each owner having a mutual-reciprocal easement to use and maintain the
driveway to the street.
Principal, Interest, Taxes and Insurance. Also called
monthly housing expense.
POINTS (loan 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).
POWER OF ATTORNEY
A written document authorizing another to act on his
behalf as an ATTORNEY IN FACT. One does not need to be a licensed attorney to
act as an attorney in fact but, power of attorney forms are powerful legal
documents that should be used only under advice of a licensed attorney at law.
An additional charge imposed by the lender for paying
off a loan before the due date.
The most favorable interest rate charged by lenders
on a short term loans to qualified customers.
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 3 percent in
some cases. With the smaller down payment loans, however, borrowers are
usually required to carry private mortgage insurance. Private mortgage
insurance will usually require an initial premium payment and may require an
additional monthly fee depending on you loan's structure.
Court process to prove a valid will.
A written unsecured note promising to pay a specified
amount of money on demand, transferable to a third party.
Sale, auction open to the public.
PURCHASE MONEY MORTGAGE (PMM)
Seller financing as a part of the purchase price.
A suit brought to remove a claim or objection on
A deed releasing whatever interest you may hold in a
property but making no warranty whatsoever. Compare, SPECIAL WARRANTY DEED and
GENERAL WARRANTY DEED
A member of National Association of Realtors.
A discounted rate for title insurance when the title
was previously insured with an owner's title insurance policy issued within
the last ten years.
The cancellation of a contract. With respect to
mortgage refinancing, the law that gives the homeowner three days to cancel a
contract in some cases once it is signed if the transaction uses equity in the
home as security.
Money paid to the lender for recording a home sale
with the local authorities, thereby making it part of the public records.
Obtaining a new mortgage loan on a property already
owned. Often to replace existing loans on the property.
An interest in land that is postponed until the
termination of some other interest such as a LIFE ESTATE. Compare, FEE SIMPLE.
short for the Real Estate Settlement Procedures Act.
RESPA is a federal law that allows consumers to review information on known or
estimated settlement cost once after application and once prior to or at a
settlement. The law requires lenders to furnish the information after
A provision in a conveyance that the land will return
to the grantor upon the happening of an event or contingency. Compare, FEE
The rights of an owner of land adjacent to water.
Small Business Administration.
A market for the purpose of purchase and sale of
existing mortgages usually at discounted prices to provide greater liquidity
to the mortgagee/lender.
A mortgage recorded after a First mortgage, ranks
second in priority.
Additional tax imposed by the local government for
public improvements such as new streets, etc..
SPECIAL WARRANTY DEED
The seller warrants he has done nothing to impair
title but makes no warranty before his ownership. Compare, GENERAL WARRANTY
DEED and QUITCLAIM DEED.
A legal action to complete the performance of a
STATUTE OF LIMITATIONS
The time period to file a law suit to enforce a claim
or it is barred by law.
Dividing land into lots and streets. The owner signs
a PLAT and Deed of Re-subdivision which is recorded among the land records.
The state and county have strict requirements for subdivision of land.
Taking title to property with a lien but not agreeing
to be personally responsible for the lien. If the holder who forecloses the
lien can take the property but may not collect any money from the owner who
took "subject to." Compare, ASSUMPTION.
TENANTS BY THE ENTIRETY
A husband and wife own the property with the common
law right of survivorship so, if one dies, the other automatically inherits.
One may not sue the other to PARTITION the property. A creditor of one may not
claim the property or the proceeds of sale. Compare, TENANT IN COMMON, JOINT
TENANTS IN COMMON
Two or more persons own the property with no right of
survivorship. If one dies, his interest passes to his heirs, not necessarily
the co-owner. Either party, or a creditor of one, may sue to PARTITION the
property. Compare, TENANTS BY THE ENTIRETY, JOINT TENANTS.
To die with a Will. Compare, INTESTATE.
One who makes out a last will and testament. The
feminine form is Testatrix.
a document that gives evidence of an individual's
ownership of property.
Insurance that provides an INDEMNITY against loss or
damage as a result of defect in title ownership to a particular piece of
property. Title insurance covers mistakes made during a TITLE SEARCH as well
as matters which could not be found or discovered in the public records such
as missing heirs, mistakes, fraud and forgery. Compare, CERTIFICATE OF TITLE.
An examination of the public records, including court
decisions, to disclose facts concerning the ownership of real estate. The
title examiner prepares an ABSTRACT and the title agent prepares a BINDER but
decisions regarding the legal sufficiency of title or questions requiring
legal interpretation must be resolved by a licensed attorney at law.
A right to or in property held for the benefit of
another. A trust may be written or implied. An implied trust is called a
One who holds property in Trust for another.
a federal law requiring disclosure of the Annual
Percentage Rate to home buyers shortly after they apply for the loan. Also
known as Regulation Z.
a mortgage in which the borrower receives a
below-market interest rate for a specified number of years (most often five or
7), 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 with 30 days notice at the end of five or 7 years.
the decision whether to make a loan to a potential
home buyer based on credit, employment, assets, and other factors and the
matching of this risk to an appropriate rate and term or loan amount.
Charging more than the maximum legally permitted rate
a long-term, low-or no-down payment loan guaranteed
by the Department of Veterans Affairs. Restricted to individuals qualified by
military service or other entitlements.
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 (VOE)
a document signed by the borrower's employer
verifying his/her position and salary.
Relinquishment of a right.
A deed conveying the title to a property with a
warranty of clean, clear marketable title
The debt secured includes an existing debt already on
the property. The payments made to the holder of the wraparound include
payments due on the existing loan and the holder must forward the appropriate
portion of each payment to the existing note holder. Often used to avoid a
PREPAYMENT PENALTY or a DUE ON SALE CLAUSE. Can refer to a wraparound DEED OF
TRUST or CONTRACT FOR DEED.
Regulation of private land use and development by