Buyers      Sellers      Financing      Foreclosure Info      Glossary      About Us      Contact Us         Real Estate Glossary   A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z   ACCELERATION - The exercise of a clause which gives the mortgagee the right to declare the entire loan due prior to maturity under certain specified conditions, usually default. ADJUSTABLE RATE MORTGAGE (ARM) - A loan with an interest rate that changes with market conditions on predetermined dates. AGENT - One who is authorized to act for or represent another (principal), usually in business matters. Authority may be expressed or implied. ANNUITY - A series of assured equal or nearly equal payments to be made over a period of time or it may be a lump-sum payment to be made in the future. ASSUMABLE LOAN - A loan that can be taken over (assumed) by a purchaser. BALLOON MORTGAGE - A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date, usually at the end of the term. BENEFICIARY - One entitled to the benefit of a trust; the lender on the security of a note and deed of trust. BROKER - A licensed real estate agent who can deal directly with principals and employ licensed real estate salespersons. CLEAR TITLE - Title with no defects/problems; marketable title. CONVENTIONAL LOAN - A mortgage that is not insured or guaranteed by a government agency such as HUD/FHA, VA, or the Farmers Home Administration. These loans may require private mortgage insurance. CONVEYANCE - The document, such as a deed, lease, or mortgage, used to effect a transfer. DEED - Written instrument that, when properly executed and delivered, conveys title. DEED IN LIEU OF FORECLOSURE - A deed given by the debtor to his or her creditor to avoid foreclosure. DEED OF TRUST - A type of security instrument conveying title in trust to a third party covering a particular piece of property. It is used to secure payment of a note. DEFAULT - A breach or nonperformance of the terms of a note or the covenants of a mortgage. DEFICIENCY - The difference between the balance outstanding on a loan and proceeds from the sale of the security property. DEFICIENCY JUDGMENT - A court order to pay the balance owed on a loan if the proceeds from the sale of the security property are insufficient to pay off the loan. DELINQUENCY - Borrower's failure to pay an obligation when due. EMINENT DOMAIN - The right of the government to acquire property for necessary public or quasi-public use by condemnation; the owner must be fairly compensated. The right of the government to do this and the right of the private citizen to get paid is spelled out in the Fifth Amendment to the U.S. Constitution. ESCROW - The deposit of instruments and funds with instructions to a third neutral party to carry out the provisions of an agreement or contract. FEDERAL HOUSING ADMINISTRATION (FHA) - A federal agency within the Department of Housing and Urban Development (HUD) that provides mortgage insurance for residential mortgages and sets standards for construction and underwriting. The FHA does not lend money, nor does it plan or construct housing. FICO SCORE - The Fair Isaac (FICO) score is the registered trademark for the most commonly used methodology for determining a consumer's credit score. FIRST TRUST DEED - A legal document pledging collateral for a loan that has first priority over all other claims against the property except taxes and bonded indebtedness. FIXTURE - Personal property that becomes real property upon being attached to real estate (e.g., furnace, sink). FOREBEARANCE - The act of refraining from taking legal action despite the fact that the mortgage is in arrears. It is usually granted only when a mortgagor makes satisfactory arrangements to pay the amount owed at a future date. FORECLOSURE - A legal procedure in which a severely delinquent mortgaged property is sold to pay the outstanding debt in case of default. FORECLOSURE SALE - A forced sale of mortgaged property at public auction conducted either by the court or in some other prescribed fashion, with the proceeds of the sale going to satisfy the debt. GRANT DEED - A deed in which "grant" is used as the word of conveyance. The grantor impliedly warrants that he or she has not already conveyed to any other person, and that the estate conveyed is free from encumbrances done, made, or suffered by the grantor or any person claiming under him or her, including taxes, assessments, and other liens. JOINT TENANCY - An equal undivided ownership of property by two or more persons, the survivor(s) to take the interest upon the death of any one of them. JUDGMENT - Final determination by a court of the rights and claims of the parties to an action. JUDICIAL FORECLOSURE - Type of foreclosure proceedings used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of the court. JUNIOR LIEN - Lien or claim against a property that is secondary or inferior to the lien of the first mortgage (e.g., a second mortgage). MORTGAGE - A formal document executed by an owner of property, pledging that property as security for payment of a debt or performance of some other obligation. NOTARY - Person who is legally authorized to authenticate contracts or take affidavits. NOTE - The agreement which states the amount to be borrowed and the terms and conditions of the loan. It also includes a complete description of how the loan should be repaid and the time frame for repayment. NOTICE OF DEFAULT - Notice given to interested parties of the default of the trustor. PITI - Items included in a monthly payment: principal, interest, taxes and insurance. PLANNED UNIT DEVELOPMENT (PUD) - A land-use design that provides intensive utilization of the land through a combination of private and common areas with prearranged sharing of responsibilities for the common areas. PROMISSORY NOTE - Following a loan commitment from a lender, the borrower signs a note, promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its repayment. REO - Real estate owned; property acquired by a lender through foreclosure. SUBJECT TO MORTGAGE - When a grantee takes a title to real property subject to mortgage, he or she is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most that the grantee can lose in the event of foreclosure is equity in the property. TAX LIEN - Government claim against real property for unpaid taxes. TENANCY IN COMMON - Ownership by two or more persons who hold undivided interest, without right of survivorship; interests need not be equal. TRUSTEE - One who holds property in trust for another to secure the performance of an obligation. TRUSTEE SALE - Sale by the trustee when the trustor defaults. A trustee's deed is given to the purchaser. TRUSTOR - One who deeds property to a trustee to be held as security until the trustor has performed any obligations to a lender under terms of a deed of trust. VETERAN'S ADMINISTRATION (VA) - An independent agency of the Federal Government created in 1930. Among the benefit programs is the Home Loan Guaranty program, which encourages mortgage lenders to offer long-term, low or no down payment financing to eligible veterans by guaranteeing the lender against loss.     In The News >>   Mobile Home Madness: Prices Top $1M >>   Landlords See Lower Apartment Vacancies >>   Fed Raises Rates Again And More Hikes Are Likely >>   Overheated Markets Due for 2006 Slowdown >>   Supreme Court: Eminent Domain OK for Economic Development      Copyright 2005 - The Capital House, Inc.