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Call Provision |
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In a mortgage or deed of trust, it refers to the mortgagee's or beneficiary's ability to speed up payment of the obligation under certain conditions. In bonds, it refers to the right to redeem the bond before maturity. |
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Capital Gains |
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Profit earned from a sale of real estate. |
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Capitalization |
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A method used to estimate value of a property based on the rate of return on investment. |
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Caps (Interest) |
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Consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage may change per year and/or the life of the loan. |
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Caps (Payment) |
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Consumer safeguards which limit the amount monthly payments on an adjustable rate mortgage may change. |
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Cashflow |
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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.) |
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Caveat Emptor |
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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. |
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Certificate Of Eligibility |
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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 Eligibility). |
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Certificate Of Occupancy |
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A certificate issued by a local governmental body stating that the building is in a condition to be occupied. |
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Certificate Of Reasonable Value (CRV) |
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An appraisal issued by the Veterans Administration showing the property's current market value. |
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Coinsurance |
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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. |
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Comparables |
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Properties used as comparisons to determine the value of a specified property. |
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Condemnation |
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Taking of private property for a public use through exercise of the power of EMINENT DOMAIN. The Constitution protects against taking without fair compensation.
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Conditional Commitment |
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During HUD/FHA mortgage insurance processing, it indicates the satisfactory completion of technical processing involving the estimated costs of the project, the as-is value of the site, the detailed estimate of the operating expenses and taxes, the supportable costs, the financial and credit capacity of the sponsors, financial requirements, and mortgage amounts. |
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Contested Foreclosure |
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When a mortgagor responds (answers) a Foreclosure Complaint disagreeing with some of the facts contained in the complaint. If the disagreement is not considered to be factual, the court may issue a Summary Judgement in favor of the mortgagee. If the answer disputes facts stated within the complaint, the court may order a hearing to determine the facts. If the mortgagor asserts new matters in the answer, this may be a Counter Complaint and may also result in Summary Judgement or a hearing. |
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Contract For Deed |
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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. |
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Convertible Standby Commitment |
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FNMA mortgage purchase that may be converted to the same yield as offered in the most recent Free Market Auction. |
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Covenants, Conditions, And Restrictions |
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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. |
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