Dictionary Of Real Estate And Mortgage Terms: I To M
Account held by a lender for payment of taxes, insurance or other related expenses. Also known as an escrow account.
Valuable additions to property which raise the value of the property.
Other costs that are incurred when a real estate loan is closed.
A published rate or benchmark measure of current interest rate levels used to calculate periodic changes in rates charged on adjustable rate mortgages.
A tax term used to describe a sale which is usually accomplished by use of a land contract.
A mortgage insured against loss to the mortgagee (lender) in the event of default and failure of the mortgaged property to satisfy the balance owing plus cost of foreclosure.
A federal tax form that lenders use at year end to notify borrowers of the interest that was paid on their mortgage over the last year.
The percentage of an amount of money which is paid for its use for a specified time.
Someone who has died without leaving a valid will.
A property that is not occupied by the owner and in most cases produces income or is held for gains from appreciation.
A liability which allows the creditor to sue any one of the debtors or sue all together.
An undivided interest in property taken by two or more joint tenants. The interests must equal, accruing under the same conveyance and beginning at the same time. Upon death of a joint tenant, the interest passes to the surviving joint tenants rather than to the heirs of the deceased.
The decision of a court of law. Money judgments, when recorded, become a lien on real property of the defendant.
A mortgage subordinate to another mortgage.
In a legal sense, the solid part of the surface of the earth, as distinguished from water; any ground, soil or earth whatsoever regarded as the subject of ownership and everything annexed to it, whether by nature, e.g., trees and everything in or on it, such as minerals and running water, or annexed to it by man; e.g., buildings, fences, etc. In an economic sense, land consists of all those elements in the wealth of a nation which is supposed to be furnished by nature as distinguished from those improvements which owe their value to the labor and organizing power of man.
Installment plan for buying a house. It is used as an alternative to obtaining a loan from a traditional, source such as a mortgage banker or savings and loan.
A penalty for failure to pay an installment on time.
Hidden structural defect.
A lease under which the lessee has the right to purchase the property. The option may run for the length of the lease or only for a portion of the lease period.
An expanded and unique description of a property that is used on legal documents, such as deeds and deeds of trust. Recorded documents generally require a legal description.
A general term encompassing all mortgages, and beneficiaries under deeds of trust.
A document that lenders prepare for the closing agent that outlines the requirements for loan closing.
One who possesses the right to use or occupy a property under lease agreement.
One who holds title to and conveys the right to use and occupy a property under lease agreement.
A formal method of stating that a prospective developer, buyer or lessee is interested in property.
An encumbrance against property for the payment of debt; a lien may be a mechanic's lien, mortgage, unpaid taxes or judgment.
An estate in real property for the life of a living person. The estate then reverts back to the grantor or to a third party.
A partnership consisting of one or more general partners who conduct the business and are responsible for losses, and one or more special partners, who contributes capital and are liable only to the amount contributed.
A public notice that litigation is pending on a property.
A record of property for sale by a broker who has been authorized by the owner to sell. Also used to denote the property so listed.
Agreement between a property owner and a real estate broker, authorizing the broker to find a buyer for the property. If the sale is consummated, the listing broker will be paid a fee.
Fees that borrowers pay (sometimes seller will pay for borrower) that adjust to the yield requirement of the investor. Loan discount denotes an investor yield requirement higher than the note rate. Loan premium denotes an investor yield requirement lower than the note rate.
Guarantee from a lender that a borrower will receive the interest rate in effect at the time of loan application.
A person that helps borrowers through the loan selection, processing, and closing of a mortgage loan. Loan officers can be paid a commission or salary for their services and can work for mortgage brokers, mortgage bankers, or depository institutions.
The cost to obtain a loan that is paid to the originating lender or broker.
The information regarding a borrower and property necessary which is the basis for a lender's credit decision to extend or deny credit.
The amount of a loan to the value or selling price of real property.
The function of collecting loan payments, managing the property tax and insurance escrows, foreclosing on defaulted loans and remitting payments to the investor/beneficiary.
The ratio of the mortgage loan amount to the property's appraised value or selling price, whichever is less.
The number of percentage points the lender adds to the index rate to calculate the adjustable rate mortgage (ARM) interest rate at each adjustment.
The most likely price a given property will bring if widely exposed on the market, assuming fully informed buyer and seller.
A title that is free and clear of objectionable liens, clouds or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection.
The management process through which efforts to conceive, develop and deliver goods and services are integrated to satisfy the needs and wants of selected customers as a means of achieving company objectives.
The price paid for a property; the amount of money that must be given or which can be obtained at the market in exchange under the immediate conditions existing at a certain date. To be distinguished from market value.
Market Value
The highest price estimated in terms of money which a buyer would be warranted in paying and a seller justified in accepting, provided both parties were fully informed, acted intelligently and voluntarily and, further, that all the rights and benefits inherent in or attributable to the property were included in the transfer.
A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land.
False statement made to or concealment of knowledge from another party with the intent to provoke action from that party.
A lien or claim against real property given as security for a loan. It is a two party agreement as apposed to the three-party agreement of a deed of trust.
A professional that helps consumers through the loan selection, processing and closing of a mortgage loan. Most mortgage brokers have access to a wide range of mortgage products through many mortgage lenders. Mortgage brokers are paid a fee by the borrower when a suitable mortgage is found and closed.
A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.
The lender of money or the receiver of the mortgage document.
Insurance required for a loan-to-value ratio above 80.01%.
Financial intermediaries that originate mortgage loans through loan officers or independent mortgage brokers and sell the mortgages into the secondary mortgage market.
The document outlining the amount of the debt, the terms and payments, the interest rate, margins and caps for ARMs, the name of the lender and the borrower, and any other material item required by the lender.
A funding facility, such as a commercial bank, that is used by mortgage companies to fund loans which are sold to an investor shortly thereafter. The mortgage notes are used as collateral for this interim financing.
The borrower of money or the giver of the mortgage document.
A means of making possible the orderly dissemination and correlations of listing information to its members so that agents may better serve the buying and selling public.
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