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Veterans Administration (VA)

jessebkaye — Mon, 16 Mar 2009 15:17:33 +0000

An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.

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vested

jessebkaye — Mon, 16 Mar 2009 15:17:05 +0000

Having the right to use a portion of a fund such as an individual retirement fund. For example, individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a retirement fund. However, taxes may be due on any funds that are actually withdrawn.

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VA mortgage

jessebkaye — Mon, 16 Mar 2009 15:16:20 +0000

A mortgage that is guaranteed by the Department of Veterans Affairs (VA).

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trustee

jessebkaye — Mon, 16 Mar 2009 15:16:04 +0000

A fiduciary who holds or controls property for the benefit of another.

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two- to four-family property

jessebkaye — Mon, 16 Mar 2009 15:15:50 +0000

A property that consists of a structure that provides living space (dwelling units) for two to four families, although ownership of the structure is evidenced by a single deed.

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two-step mortgage

jessebkaye — Mon, 16 Mar 2009 15:15:01 +0000

An adjustable-rate mortgage (ARM) that has one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.

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Truth-in-Lending

jessebkaye — Mon, 16 Mar 2009 15:14:47 +0000

A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.

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Treasury index

jessebkaye — Mon, 16 Mar 2009 15:14:15 +0000

An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury’s daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. [Top]

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transfer tax

jessebkaye — Mon, 16 Mar 2009 15:13:54 +0000

State or local tax payable when title passes from one owner to another.

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transfer of ownership

jessebkaye — Mon, 16 Mar 2009 15:13:20 +0000

Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property “subject to” the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device.

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title search

jessebkaye — Mon, 16 Mar 2009 15:13:06 +0000

A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding.

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title insurance

jessebkaye — Mon, 16 Mar 2009 15:12:31 +0000

Insurance that protects the lender (lender’s policy) or the buyer (owner’s policy) against loss arising from disputes over ownership of a property.

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title company

jessebkaye — Mon, 16 Mar 2009 15:11:45 +0000

A company that specializes in examining and insuring titles to real estate.

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title

jessebkaye — Mon, 16 Mar 2009 15:11:25 +0000

A legal document evidencing a person’s right to or ownership of a property.

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third-party origination

jessebkaye — Mon, 16 Mar 2009 15:10:39 +0000

A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.

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tenancy in common

jessebkaye — Mon, 16 Mar 2009 15:10:23 +0000

As opposed to joint tenancy, when there are two or more individuals on title to a piece of property, this type of ownership does not pass ownership to the others in the event of death.

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sweat equity

jessebkaye — Mon, 16 Mar 2009 15:10:09 +0000

Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash.

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subordinate financing

jessebkaye — Mon, 16 Mar 2009 15:09:21 +0000

Any mortgage or other lien that has a priority that is lower than that of the first mortgage.

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survey

jessebkaye — Mon, 16 Mar 2009 15:09:18 +0000

A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

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subdivision

jessebkaye — Mon, 16 Mar 2009 15:08:41 +0000

A housing development that is created by dividing a tract of land into individual lots for sale or lease.

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servicing

jessebkaye — Mon, 16 Mar 2009 15:08:20 +0000

The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

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servicer

jessebkaye — Mon, 16 Mar 2009 15:08:02 +0000

An organization that collects principal and interest payments from borrowers and manages borrowers’ escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.

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seller carry-back

jessebkaye — Mon, 16 Mar 2009 15:07:19 +0000

An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.

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secured loan

jessebkaye — Mon, 16 Mar 2009 15:06:10 +0000

A loan that is backed by collateral.

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sale-leaseback

jessebkaye — Mon, 16 Mar 2009 15:05:23 +0000

A technique in which a seller deeds property to a buyer for a consideration, and the buyer simultaneously leases the property back to the seller.

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right of survivorship

jessebkaye — Mon, 16 Mar 2009 15:04:47 +0000

In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.

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right of ingress or egress

jessebkaye — Mon, 16 Mar 2009 15:04:31 +0000

The right to enter or leave designated premises.

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right of first refusal

jessebkaye — Mon, 16 Mar 2009 15:04:00 +0000

A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.

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revolving debt

jessebkaye — Mon, 16 Mar 2009 15:03:43 +0000

A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.

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replacement reserve fund

jessebkaye — Mon, 16 Mar 2009 15:03:24 +0000

A fund set aside for replacement of common property in a condominium, PUD, or cooperative project — particularly that which has a short life expectancy, such as carpeting, furniture, etc.

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repayment plan

jessebkaye — Mon, 16 Mar 2009 15:03:03 +0000

An arrangement made to repay delinquent installments or advances.

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rent loss insurance

jessebkaye — Mon, 16 Mar 2009 15:02:43 +0000

Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that renders the leased premises unavailable for use and as a result of which the tenant is excused from paying rent.

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remaining term

jessebkaye — Mon, 16 Mar 2009 15:02:23 +0000

The original amortization term minus the number of payments that have been applied.

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remaining balance

jessebkaye — Mon, 16 Mar 2009 15:02:08 +0000

The amount of principal that has not yet been repaid. See principal balance.

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refinance transaction

jessebkaye — Mon, 16 Mar 2009 15:01:47 +0000

The process of paying off one loan with the proceeds from a new loan using the same property as security.

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recording

jessebkaye — Mon, 16 Mar 2009 15:01:26 +0000

The noting in the registrar’s office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.

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recorder

jessebkaye — Mon, 16 Mar 2009 15:01:09 +0000

The public official who keeps records of transactions that affect real property in the area. Sometimes known as a “Registrar of Deeds” or “County Clerk.”

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Realtor®

jessebkaye — Mon, 16 Mar 2009 15:00:28 +0000

A real estate agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors.

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real property

jessebkaye — Mon, 16 Mar 2009 15:00:10 +0000

Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof.

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Real Estate Settlement Procedures Act (RESPA)

jessebkaye — Mon, 16 Mar 2009 14:59:48 +0000

A consumer protection law that requires lenders to give borrowers advance notice of closing costs.

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real estate agent

jessebkaye — Mon, 16 Mar 2009 14:59:23 +0000

A person licensed by the National Association of Realtors to negotiate and transact the sale of real estate

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quitclaim deed

jessebkaye — Mon, 16 Mar 2009 14:58:00 +0000

A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.

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rate lock

jessebkaye — Mon, 16 Mar 2009 14:57:54 +0000

A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.

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qualifying ratios

jessebkaye — Mon, 16 Mar 2009 14:57:03 +0000

Calculations that are used in determining whether a borrower can qualify for a mortgage. There are two ratios. The “top” or “front” ratio is a calculation of the borrower’s monthly housing costs (principle, taxes, insurance, mortgage insurance, homeowner’s association fees) as a percentage of monthly income. The “back” or “bottom” ratio includes housing costs as will as all other monthly debt.

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purchase money transaction

jessebkaye — Mon, 16 Mar 2009 14:56:50 +0000

The acquisition of property through the payment of money or its equivalent.

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purchase agreement

jessebkaye — Mon, 16 Mar 2009 14:55:50 +0000

A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

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Planned Unit Development (PUD)

jessebkaye — Mon, 16 Mar 2009 14:55:25 +0000

A project or subdivision that includes common property that is owned and maintained by a homeowners’ association for the benefit and use of the individual PUD unit owners.

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public auction

jessebkaye — Mon, 16 Mar 2009 14:54:45 +0000

A meeting in an announced public location to sell property to repay a mortgage that is in default.

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promissory note

jessebkaye — Mon, 16 Mar 2009 14:54:32 +0000

A written promise to repay a specified amount over a specified period of time.

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private mortgage insurance (MI)

jessebkaye — Mon, 16 Mar 2009 14:54:12 +0000

Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.

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