|
 |
A- G | H - O | P - Z
| |
Parcel |
| |
A piece of land or property under one ownership. Parcels are created when a single large property is sub-divided into many smaller pieces of property. |
| |
Paritition |
| |
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. |
| |
PAR |
| |
A situation where the face value of a mortgage (or bond) principal equals its actual selling price -- that is, with no discount or premium. |
| |
Pay-Off Amount |
| |
A total balance, mount of a full payment on existing loan or lien. |
| |
Payoff Schedule |
| |
The dollar figure in the Payment Schedule represent the principal, interest, plus Private Mortgage Insurance (if applicable) over the life of the loan. These figures will not reflect taxes and insurance escrows or any temporary buydown payments contributed by the seller. |
| |
Per-Diem Interest |
| |
Interest charges that cover the period of time—usually a matter of days, or a few weeks—between when you close on your home, and the first day of the first month of your regular loan payments. |
| |
Permanent Loan |
| |
A long term mortgage, usually ten years or more. Also called an end loan. |
| |
Piggyback Financing |
| |
Two different mortgagors participating in the same loan. |
| |
Pipeline |
| |
Term used to express loan applications in process up until closing or until the mortgage is sold; used when analyzing mortgage loan inventory or commitment coverage. |
| |
Pledged Account Mortgage (PAM) |
| |
- Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.
|
| |
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. |
| |
Pro Forma Statement |
| |
Latin word meaning according to form; a projection of anticipated income, expenses, and cash flow from an investment enterprise. |
| |
Prospectus |
| |
- A proposal or offering in conjunction with the sale of improved or unimproved property that outlines all aspects of the offer. Regulations of the Securities and Exchange Commission require many real estate offerings to be described by a detailed prospectus.
|
| |
Purchase Agreement |
| |
An unconditional sales contract that defines the terms and conditions under which real property is conveyed. |
| |
Purchase Money Mortgage (PMM) |
| |
Seller financing as a part of the purchase price. |
|
Quiet Title |
|
- A suit brought to remove a claim or objection on title.
|
|
Quit Claim Deed |
|
A deed releasing whatever interest you may hold in a property but making no warranty whatsoever. Compare, SPECIAL WARRANTY DEED and GENERAL WARRANTY DEED |
|
Rate Lock |
|
A way you can establish that the interest rate on your loan remains the same between the time of your application, and when you qualify for the loan. When applying for a loan, you can lock the interest rate for a specific amount of time; depending on the length of the lock, this feature may cost as much as 1% of the total value of the loan, although often it is offered free of charge by the lender. |
|
Reaffirmation Agreement |
|
Debtor who has filed bankruptcy reconfirms the promise to pay a debt after filing bankruptcy. |
|
Real Estate Investment Trust(Reit) |
|
An investment vehicle established for the benefit of a group of real estate investors and managed by one or mire trustees who hold title to the assets for the trust and control its acquisitions and investments. |
|
Reasonable Investigation |
|
Statutory process in some foreclosure court jurisdictions mandating the procedures required to certify to the court that the defendant (mortgagor) cannot be found for the purpose of serving (hand delivering) a notice of a complaint in foreclosure, thereby permitting alternate service, usually publication of the complaint in an approved newspaper or nailing it to the door of the property which is called Posting. |
|
Reassessment |
|
The process of updating the understood value of a property for tax purposes. |
|
Recision |
|
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. |
|
Reconciled Value |
|
The Fair Market Value of a property as determined by the weighted analysis of different types of opinions of value such as an Appraisal, BPO (Broker's Price Opinion), CMA (Comparative Market Analysis), Property Inspections, Electronic Data, and other methodology such as interviews with the producers of these products and corporate field inspections.
|
|
Recording Fees |
|
- Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
|
|
Renegotiable Rate Mortgage |
|
- A loan in which the interest rate is adjusted periodically. See adjustable rate mortgage.
|
|
Reverse Annuity Mortgage (RAM) |
|
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a release of mortgage. |
|
Reverse Repurchase Agreement |
|
An agreement to purchase mortgage-backed securities from a party with a simultaneous agreement to resell them at a specified future date and price. |
|
Riparian Rights |
|
The rights of an owner of land adjacent to water. |
|
Rollover |
|
Renewal of a loan at the time of maturity; Reinvestment of the proceeds of the sale of a housing unit into another, which defers payment of the tax on the gain from the sale. |
|
Quiet Title |
|
- A suit brought to remove a claim or objection on title.
|
|
Quit Claim Deed |
|
A deed releasing whatever interest you may hold in a property but making no warranty whatsoever. Compare, SPECIAL WARRANTY DEED and GENERAL WARRANTY DEED |
|
Rate Lock |
|
A way you can establish that the interest rate on your loan remains the same between the time of your application, and when you qualify for the loan. When applying for a loan, you can lock the interest rate for a specific amount of time; depending on the length of the lock, this feature may cost as much as 1% of the total value of the loan, although often it is offered free of charge by the lender. |
|
Reaffirmation Agreement |
|
Debtor who has filed bankruptcy reconfirms the promise to pay a debt after filing bankruptcy. |
|
Real Estate Investment Trust(Reit) |
|
An investment vehicle established for the benefit of a group of real estate investors and managed by one or mire trustees who hold title to the assets for the trust and control its acquisitions and investments. |
|
Reasonable Investigation |
|
Statutory process in some foreclosure court jurisdictions mandating the procedures required to certify to the court that the defendant (mortgagor) cannot be found for the purpose of serving (hand delivering) a notice of a complaint in foreclosure, thereby permitting alternate service, usually publication of the complaint in an approved newspaper or nailing it to the door of the property which is called Posting. |
|
Reassessment |
|
The process of updating the understood value of a property for tax purposes. |
|
Recision |
|
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. |
|
Reconciled Value |
|
The Fair Market Value of a property as determined by the weighted analysis of different types of opinions of value such as an Appraisal, BPO (Broker's Price Opinion), CMA (Comparative Market Analysis), Property Inspections, Electronic Data, and other methodology such as interviews with the producers of these products and corporate field inspections.
|
|
Recording Fees |
|
- Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
|
|
Renegotiable Rate Mortgage |
|
- A loan in which the interest rate is adjusted periodically. See adjustable rate mortgage.
|
|
Reverse Annuity Mortgage (RAM) |
|
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a release of mortgage. |
|
Reverse Repurchase Agreement |
|
An agreement to purchase mortgage-backed securities from a party with a simultaneous agreement to resell them at a specified future date and price. |
|
Riparian Rights |
|
The rights of an owner of land adjacent to water. |
|
Rollover |
|
Renewal of a loan at the time of maturity; Reinvestment of the proceeds of the sale of a housing unit into another, which defers payment of the tax on the gain from the sale. |
| |
Securities And Exchange Commission (SEC) |
| |
The federal agency which regulates securities and the securities business. It is involved in real estate and mortgage lending when MBS are issued.
|
| |
Security Instrument |
| |
The mortgage or trust deed evidencing the pledge of real estate security as distinguished from the note or other credit instrument. |
| |
Security |
| |
Real or personal property pledged by a borrower, as additional protection for the lender's interest. |
| |
Self-Amortizing Loan |
| |
A loan that gets paid back through regular monthly installments, each of which is a combination of a pay-backs to the principal of the loan, and its interest charges. |
| |
Sensitivity Analysis |
| |
- A method of valuation of the rate of return on an investment which changes with a single factor.
|
| |
Service Of The Complaint |
| |
- Hand delivery of a Complaint in Mortgage Foreclosure to all mortgagors of a mortgage being foreclosed. Service is usually perfected (completed) by a Sheriff, Deputy Sheriff, or authorized process server. Foreclosure cannot be continued until such time as the complaint has been served and the mortgagor has had the prescribed time to reply, usually 21 days.
|
| |
Servicing Agreement |
| |
- A written agreement between an investor and mortgage servicer stipulating the rights and obligations of each party.
|
| |
Shared Appreciation Mortgage (SAM) |
| |
A mortgage in which a borrower receives a below-market interest rate in return for which the lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to mortgage where the borrowers shares the monthly principal and interest payments with another party in exchange for part of the appreciation.
|
| |
Standby Commitment |
| |
A commitment to purchase a loan or loans with specified terms, both parties understanding that delivery is not likely unless circumstances warrant. The commitment is issued for a fee with willingness to fund in the event that a permanent loan is not obtained. Such commitments are typically used to enable the borrower to obtain construction financing at a lower cost on the assumption that permanent financing of the project will be available on more favorable terms when the improvements are completed and the project is generating income. |
| |
Standing Mortgage |
| |
A loan where no amortization payments are required and the entire loan comes due at maturity. Interest is normally paid at periodic intervals while the loan is standing. |
| |
Subject To |
| |
- 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.
|
| |
Subdivision |
| |
Dividing land into lots and streets. The owner signs a PLAT and Deed of Resubdivision which is recorded among the land records. The state and county have strict requirements for subdivision of land. |
| |
Survey |
| |
A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to know points, its dimensions, and the location and dimensions of any buildings. |
| |
Tax Lien |
| |
A claim against property for the amount of its due and unpaid taxes. |
| |
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. |
| |
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. |
| |
Term |
| |
The period of time between the commencement date and termination date of a note, mortgage, legal document, or other contract. |
| |
Title Insurance |
| |
A policy, usually issued by a title insurance company, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller. Policies are also available to protect the lender's interests. 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. |
| |
Title Search |
| |
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. |
| |
Total Of Payments |
| |
The total of all payments made toward principal, interest, and mortgage insurance (if applicable) over the life of the loan. |
| |
Trust Deed |
| |
- The instrument given by a borrower (trustor) to a trustee vesting title to a property in the trustee as security for the borrower's fulfillment of an obligation.
|
| |
Trust |
| |
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 Constructive Trust. |
| |
Truth-In-Lending |
| |
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. |
| |
Two-Step Mortgage |
| |
- 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.
|
| |
Underwriting |
| |
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. |
| |
Up-Front Costs |
| |
The total amount of cash you need to pay when you buy a home, minus the amount of your loan. Up front costs include your down payment, any closing fees you must pay—like broker's commissions or insurance charges—and the discount points you can use to lower your overall interest rate. |
| |
Usury |
| |
Charging more than the maximum legally permitted rate of interest. |
| |
VA Loan |
| |
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. |
| |
VA Mortgage Funding Fee |
| |
A premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a VA-backed loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed. |
| |
Valuation |
| |
Estimation of value or price through appraisal. |
| |
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.
|
| |
Verification Of Rent (VOR) |
| |
A document signed by the borrower's landlord/management of when they reside verifying the status of his/her monthly obligations . (Rent) |
| |
Vested Interest |
| |
- A fixed right to the enjoyment of real estate by a specified person, subject to termination of a previous estate.
|
| |
Underwriting |
| |
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. |
| |
Up-Front Costs |
| |
The total amount of cash you need to pay when you buy a home, minus the amount of your loan. Up front costs include your down payment, any closing fees you must pay—like broker's commissions or insurance charges—and the discount points you can use to lower your overall interest rate. |
| |
Usury |
| |
Charging more than the maximum legally permitted rate of interest. |
| |
VA Loan |
| |
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. |
| |
VA Mortgage Funding Fee |
| |
A premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a VA-backed loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed. |
| |
Valuation |
| |
Estimation of value or price through appraisal. |
| |
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.
|
| |
Verification Of Rent (VOR) |
| |
A document signed by the borrower's landlord/management of when they reside verifying the status of his/her monthly obligations . (Rent) |
| |
Vested Interest |
| |
- A fixed right to the enjoyment of real estate by a specified person, subject to termination of a previous estate.
|
| |
Waiver |
| |
Relinquishment of a right. |
| |
Warehousing |
| |
The borrowing of funds by a mortgage banker on a short-term basis using permanent mortgage loans as collateral. This form of interim financing is used until the mortgages are sold to a permanent investor. |
| |
Warranty Deed |
| |
A deed conveying the title to a property with a warranty of clean, clear marketable title. |
| |
Wraparound Mortgage |
| |
Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top. |
| |
Wraparound |
| |
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 noteholder. 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. |
| |
Yield |
| |
The ratio of investment income to the total investment amount over a given period of time. |
| |
Zoning |
| |
- Regulation of private land use and development by local government.
|
| |
Waiver |
| |
Relinquishment of a right. |
| |
Warehousing |
| |
The borrowing of funds by a mortgage banker on a short-term basis using permanent mortgage loans as collateral. This form of interim financing is used until the mortgages are sold to a permanent investor. |
| |
Warranty Deed |
| |
A deed conveying the title to a property with a warranty of clean, clear marketable title. |
| |
Wraparound Mortgage |
| |
Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top. |
| |
Wraparound |
| |
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 noteholder. 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. |
| |
Yield |
| |
The ratio of investment income to the total investment amount over a given period of time. |
| |
Zoning |
| |
- Regulation of private land use and development by local government.
|
| |
Waiver |
| |
Relinquishment of a right. |
| |
Warehousing |
| |
The borrowing of funds by a mortgage banker on a short-term basis using permanent mortgage loans as collateral. This form of interim financing is used until the mortgages are sold to a permanent investor. |
| |
Warranty Deed |
| |
A deed conveying the title to a property with a warranty of clean, clear marketable title. |
| |
Wraparound Mortgage |
| |
Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top. |
| |
Wraparound |
| |
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 noteholder. 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. |
| |
Yield |
| |
The ratio of investment income to the total investment amount over a given period of time. |
| |
Zoning |
| |
- Regulation of private land use and development by local government.
|
|
