A
ABSTRACT
ACCELERATION
ACCELERATION CLAUSE
ACCRETION
ACKNOWLEDGEMENT
ACRE
ADEQUATE PROTECTION ORDER
ADJUSTABLE RATE MORTGAGE (ARM)
ADJUSTMENT INTERVAL
ADMINISTRATOR
ADVERSE POSSESSION
AGENCY
AGENT
AGREEMENT
AMOUNT FINANCED
AMORTIZATION
AMORTIZED LOAN
ANNUAL CAP
ANNUAL PERCENTAGE RATE (A.P.R.)
APPRAISAL
APPRAISED VALUE
APPROVED ATTORNEY
APPURTENANCE
ARBITRAGE
ARM'S LENGTH TRANSACTION
ASSESSMENT
ASSESSED VALUE
ASSIGN
ASSIGNEE
ASSIGNOR
ASSIGNMENT OF MORTGAGE
ASSOCIATE BROKER
ASSUMPTION AGREEMENT
ASSUMPTION FEE
ASSUMPTION OF A MORTGAGE
ATTACHMENT
ATTORNEY IN FACT

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B
BALLOON (PAYMENT) MORTGAGE
BALLOON PAYMENT
BANKRUPTCY
BASIS POINT
BELLY UP
BENCHMARK
BENEFICIARY
BI-WEEKLY MORTGAGE
BID
BINDER
BLANKET MORTGAGE
BOND
BORROWER (MORTGAGOR)
BREACH OF CONTRACT
BROKER
BUILDING RESTRICTION LINE
BUY-DOWN
BY-LAWS

C
CALL
CALL PROVISION
CAPITAL GAINS
CAPITALIZATION
CAPS (INTEREST)
CAPS (PAYMENT)
CASHFLOW
CAVEAT EMPTOR
CERTIFICATE OF ELIGIBILITY ,
CERTIFICATE OF OCCUPANCY
CERTIFICATE OF REASONABLE VALUE (CRV)
CERTIFICATE OF SALE
CERTIFICATE OF SATISFACTION
CERTIFICATE OF TITLE
CERTIFICATE OF VETERAN STATUS
CERTIFIED MORTGAGE BANKER (CMB)
CHAIN OF TITLE
CHAPTER 7
CHAPTER 11
CHAPTER 13
CHATTEL
CLASS ACTION
CLEAR TITLE
CLOSED-END MORTGAGE
CLOSING
CLOSING COSTS
CLOUD ON TITLE
CMBS
COINSURANCE
COLLATERAL
COMMITMENT
COMPARABLES
CONDEMNATION
CONDITIONAL COMMITMENT
CONDOMINIUM
CONSERVATOR
CONSTRUCTION LOAN
CONTESTED FORECLOSURE
CONTRACT
CONTRACT FOR DEED
CONTRACT SALE OR DEED:
CONVENTIONAL LOAN
CONVERGENCES
CONVERTIBLE MORTGAGE
CONVERTIBLE STANDBY COMMITMENT
COOPERATIVE
CORRESPONDENT
COST APPROACH
COTENANCY
COVENANT
COVENANTS, CONDITIONS, AND RESTRICTIONS.
CREDIT LIFE
CREDIT REPORT

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D
DEBT COVERAGE RATIO
DEBT SERVICE
DEBT-TO-INCOME RATIO
DEED
DEED OF TRUST
DEED IN LIEU
DEFAULT
DEFERRED INTEREST
DEFICIENCY JUDGMENT
DELINQUENCY
DELIVERY
DEPARTMENT OF VETERANS AFFAIRS (VA)
DEPOSIT
DISCHARGE
DISCOUNT
DISCOUNT POINT
DOWER
DOWN PAYMENT
DUAL AGENCY
DUE ON SALE CLAUSE

E
EARNEST MONEY
EASEMENT
ECOA
ECONOMIC LIFE
EFFECTIVE AGE
EMINENT DOMAIN
ENCROACHMENT
ENCUMBRANCE
ENDORSEMENT
ENTITLEMENT
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
EQUITY
EQUITY SHARING
ESCHEAT
ESCROW
ESCROW ACCOUNT
ESCROW AGENT
ESCROW ANALYSIS
ESCORW COMPANY
ESCORW CONTRACT
ESCROW OVERAGE OR SHORTAGE
ESCROW PAYMENT
EVICTION
EXECUTED SALES CONTRACT
EXECUTOR

F
FACE VALUE
FAIR MARKET VALUE
FANNIE MAE
FARMERS HOME ADMINISTRATION (FMHA)
FDIC
FEDERAL HOME LOAN BANK BOARD (FHLBB)
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) ALSO CALLED FREDDIE MAC,
FEDERAL HOUSING ADMINISTRATION (FHA)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) ALSO KNOW AS FANNIE MAE
FEE SIMPLE
FHA LOAN
FHA MORTGAGE INSURANCE
FHLMC
FIDUCIARY
FIDUCIARY RELATIONSHIP
FINANCE CHARGE
FINANCING STATEMENT
FIRST MORTGAGE
FIRM COMMITMENT
FIXED RATE MORTGAGE
FIXTURE
FLOATING RATE OF INTEREST
FLOOD INSURANCE
FNMA
FORBEARANCE
FORECLOSURE
FORWARD COMMITMENT
FORWARD DELIVERY
FREDDIE MAC
FREE-MARKET SYSTEM AUCTION
FULL DISCLOSURE
FULLY INDEXED NOTE RATE

G
GENERAL WARRANTY DEED
GESTATION REPO
GIFT LETTER
GINNIE MAE
GOING LONG
GOING SHORT
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GRADUATED PAYMENT MORTGAGE (GPM)
GRANTEE
GRANTOR
GROSS INCOME
GROSS MARGIN
GROUND LEASE
GUARANTEED COUPON
GUARANTEED MORTGAGE CERTIFICATE (GMC)
GUARANTY
GUARDIAN

H
HAZARD INSURANCE
HEDGING
HIATUS
HOME EQUITY LOAN
HOMESTEAD DEED
HOUSING EXPENSES-TO-INCOME RATIO
HOUSING RATIO

I
IMPOUND
INCOME APPROACH
INDEMNITY
INDEX
INGRESS AND EGRESS
INITIAL NOTE RATE
INSTITUTIONAL LENDER
INSURABLE TITLE
INSURED CLOSING LETTER
INSURED MORTGAGE
INTEREST
INTEREST RATE
INTERIM FINANCING
INTERNAL RATE OF RETURN
INTESTATE
INVESTOR

J
JOINT OWNERSHIP AGREEMENT
JOINT TENANTS
JUDGMENT LIEN
JUMBO LOAN
JUNIOR MORTGAGE

K
KICKER

L
LAND CONTRACT
LATE CHARGE
LEASE HOLD ESTATE
LENDER
LETTER OF CREDIT
LIEN
LIFE CAP
LIFE ESTATE
LINE OF CREDIT
LIQUIDITY
LIS PENDENS
LOAN APPLICATION
LOAN FEE
LOAN GUARANTY CERTIFICATE
LOAN TERM
LOAN-TO-VALUE RATIO (LTV)
LOCK-IN PERIOD
LOSS MITIGATION

M
MAJORITY
MARGIN
MARGIN CALL
MARK TO THE MARKET
MARKET APPROACH TO VALUE
MARKET VALUE
MARKETABLE TITLE
MATURITY DATE
MECHANIC'S LIENS
METES AND BOUNDS
MIP (MORTGAGE INSURANCE PREMIUM)
MONTHLY HOUSING ALLOWANCE
MORTGAGE
MORTGAGE-BACKED SECURITIES
MORTGAGE BANKER
MORTGAGE BANKING
MORTGAGE BROKER
MORTGAGE INSURANCE
MORTGAGE PORTFOLIO
MORTGAGE REVENUE BOND
MORTGAGEE
MORTGAGOR

N
NEGATIVE AMORTIZATION
NEGOTIABLE INSTRUMENT
NET EFFECTIVE INCOME
NET WORTH
NON ASSUMPTION CLAUSE
NOTARY PUBLIC
NOTE

O
OBLIGATIONS
OFFER
OFFICE OF THRIFT SUPERVISION (OTS)
OPEN-END MORTGAGE
OPTION
ORIGINATION FEE
ORIGINATOR
OWNER OF RECORD

P
PAR
PARCEL
PARTITION
PAYOFF SCHEDULE
PAY-OFF AMOUNT
PER-DIEM INTEREST
PERMANENT LOAN
PIGGYBACK FINANCING
PIPELINE
PIPESTEM LOT
PITI
PLAT
PLEDGED ACCOUNT MORTGAGE (PAM):
POINTS (LOAN DISCOUNT POINTS)
POWER OF ATTORNEY
PRE-APPROVAL
PRE-FORECLOSURE SHORT SALE
PREPAID EXPENSES
PREPAID FINANCE CHARGE
PREPAYMENT
PREPAYMENT CLAUSE
PREPAYMENT PENALTY
PRIMARY MORTGAGE MARKET
PRIME RATE
PRINCIPAL
PRIVATE MORTGAGE INSURANCE (PMI)
PROBATE
PRO FORMA STATEMENT
PROMISSORY NOTE
PROPERTY PRESERVATION
PRORATE
PROSPECTUS
PUBLIC RECORDS
PUBLIC SALE
PUNCH LIST
PURCHASE AGREEMENT
PURCHASE CAPITAL
PURCHASE MONEY MORTGAGE (PMM)
PUT

Q
QUIET TITLE
QUIT CLAIM DEED

R
RATE LOCK
REAFFIRMATION AGREEMENT
REAL ESTATE
REAL ESTATE INVESTMENT TRUST (REIT)
REALTOR
REASONABLE INVESTIGATION
REASSESSMENT
RECISION
RECONCILED VALUE
RECORDING
RECORDING FEES
REDLINING
REFINANCE
REINSTATEMENT
REMAINDER
RENEGOTIABLE RATE MORTGAGE
REPURCHASE AGREEMENT
RESISSUE RATE
RESPA
RETIRE A DEBT
REVERSE ANNUITY MORTGAGE (RAM)
REVERSE REPURCHASE AGREEMENT
REVERSION
RIPARIAN RIGHTS
ROLLOVER
ROLLOVER MORTGAGE

S
SBA
SECOND MORTGAGE
SECONDARY FINANCING
SECONDARY MARKET
SECONDARY MORTGAGE MARKET
SECURED PARTY
SECURITIES AND EXCHANGE COMMISSION (SEC)
SECURITY
SECURITY INSTRUMENT
SELF-AMORTIZING LOAN
SENSITIVITY ANALYSIS
SERVICE OF THE COMPLAINT
SERVICING
SERVICING AGREEMENT
SERVICING INCOME
SERVICING RUNOFF
SETTLEMENT/SETTLEMENT COSTS
SETTLEMENT STATEMENT
SHARED APPRECIATION MORTGAGE (SAM)
SIMPLE INTEREST
SINKING FUND
SITE ASSESSMENT
SOFT DOLLARS
SPECIAL ASSESSMENT
SPECIAL WARRANTY DEED
SPECIFIC PERFORMANCE
STANDBY COMMITMENT
STANDBY CONTRACT
STANDBY FEE
STANDING MORTGAGE
STATUTE OF LIMITATIONS
SUBDIVISION
SUBJECT TO
SURVEY
SWEAT EQUITY

T
TAX LIEN
TENANTS BY THE ENTIRETY
TENANTS IN COMMON
TERM
TESTATE
TESTATOR
TITLE
TITLE INSURANCE
TITLE SEARCH
TOTAL OF PAYMENTS
TRUST
TRUST DEED
TRUSTEE
TRUTH-IN-LENDING
TWO-STEP MORTGAGE

U
UNDERWRITING
UP-FRONT COSTS
USURY

V
VA LOAN
VA MORTGAGE FUNDING FEE
VALUATION
VARIABLE RATE MORTGAGE (VRM)
VERIFICATION OF DEPOSIT (VOD)
VERIFICATION OF EMPLOYMENT (VOE)
VESTED INTEREST

W
WAIVER
WAREHOUSE FEE
WAREHOUSING
WARRANTY DEED
WRAPAROUND
WRAPAROUND MORTGAGE

Y
YIELD

Z
ZONING

A

ABSTRACT

The notes made by a title examiner based on his examination of the land records. These notes are a concise summary of the transactions affecting the property. The title agency produces a BINDER from the information in the abstract.

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ACCELERATION

The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale Clause.

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ACCELERATION CLAUSE

A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as the sale of the property, or a delinquency in the repayment of the note.

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ACCRETION

The buildup of land from natural forces such as wind or water.

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ACKNOWLEDGEMENT

As a verb, the confirmation by a party executing a legal document that this is his signature and voluntary act. This confirmation is made to an authorized officer of the Court or notary public who signs a statement also called an acknowledgment.

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ACRE

43,560 square feet of land.

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ADEQUATE PROTECTION ORDER

Forces trustees to release Post petition payments being held prior to the Chapter 13 Confirmation Hearing.

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ADJUSTABLE RATE MORTGAGE (ARM)

Is a mortgage in which the interest rate is adjusted periodically based on a preselected index. Also sometimes known as the re negotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

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ADJUSTMENT INTERVAL

On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years, depending on the index.

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ADMINISTRATOR

A person appointed by the Court to settle the estate of a person who dies without a will. The feminine form is Administratrix. Compare, EXECUTOR.

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ADVERSE POSSESSION

A claim made against land titled in another person based on open, notorious and hostile possession and use of the land to the exclusion of the titled owner.

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AGENCY

A relationship in which the agent is given the authority to act on behalf of another person (Principal).

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AGENT

One who legally represents another, called a principal, from whom authority has been derived.

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AGREEMENT

A change to the correct or alteration to the original document/agreement without changing its principal essence.

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AMOUNT FINANCED

The amount applied for less the prepaid finance charges. Prepaid finance charges can be found on the Good Faith Settlement Statement (HUD1 or HUD1A). For example, if the borrower's Note is for $100,000 and the prepaid finance charge total is $5,000, the Amount Financed would be $95,000. The Amount Finance is the amount on which the Annual Percentage Rate (APR) is calculated.

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AMORTIZATION

Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

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AMORTIZED LOAN

A loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity.

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ANNUAL CAP

The limit on the amount an adjustable rate mortgage's interest rate can change over a 12-month period. An annual cap prevents your payments from changing too dramatically, even if the factors that determine changes in an adjustable mortgage's rate rise or fall sharply during that period.

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ANNUAL PERCENTAGE RATE (A.P.R.)

This is not the Note rate for which the borrower applied. It is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs, such as private mortgage insurance, loan discount, origination fees, and other credit costs. The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan.

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APPRAISAL

An estimate of the value of property, made by a qualified professional called an appraiser. Most states require licenses. Various lenders have their own lists of approved appraisers.

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APPRAISED VALUE

An opinion of value reached by an appraiser based upon knowledge, experience, and a study of pertinent data.

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APPROVED ATTORNEY

An attorney authorized by a title insurance company to handle closings and render title opinions.

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APPURTENANCE

Anything attached to the land or used with it passing to the new owner.

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ARBITRAGE

In mortgage banking, the simultaneous purchase and sale of mortgages, futures contracts, or mortgage backed securities in different markets to profit from differences in price.

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ARM'S LENGTH TRANSACTION

A transaction in which the parties involved are entirely independent of each other, deal with each other as strangers, and have no reason for collusion.

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ASSESSMENT

A local tax levied against a property for a specific purpose, such as a sewer or street lights.

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ASSESSED VALUE

The determination, for tax purposes, of how much a home and the property it occupies is worth.

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ASSIGN

To transfer interest.

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ASSIGNEE

One who receives an assignment or transfer of rights. An assignment of a contract transfers the right to buy property.

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ASSIGNOR

The one who assigns to another person.

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ASSIGNMENT OF MORTGAGE

A document that evidences a transfer of ownership of a mortgage from one party to another.

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ASSOCIATE BROKER

A person who has qualified as a real estate broker but works for a particular broker licensed in the state.

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ASSUMPTION AGREEMENT

The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, possibly higher, market-rate interest charges will apply.

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ASSUMPTION FEE

The fee paid to a lender resulting from the assumption of a mortgage.

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ASSUMPTION OF A MORTGAGE

Assumption by a purchaser of the primary liability for a payment of an existing mortgage or deed of trust. The seller remains secondarily liable unless specially released by the lender.

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ATTACHMENT

Seizure of property through Court process to repay a debt.

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ATTORNEY IN FACT

A type of agency relationship where one person holds a POWER OF ATTORNEY allowing him to execute legal documents on behalf of another. Decisions made by the attorney in fact are binding on the principal.

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B

BALLOON (PAYMENT) MORTGAGE

Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.

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BALLOON PAYMENT

The unpaid principal amount of a mortgage or other long-term loan due on a specified date in the future. Usually the amount that must be paid in a lump sum at the end of the term.

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BANKRUPTCY

A provision of Federal Law whereby a debtor surrenders his assets to the Bankruptcy Court and is relieved of the future obligation to repay his unsecured debts. A Trustee in Bankruptcy administers the assets, selling them to pay as much of the debt as possible. If your seller is in bankruptcy, the Trustee in Bankruptcy owns the property and is the party to sign the contract and make decisions. After bankruptcy, the debtor is discharged and his unsecured creditors may not pursue further collection efforts against him. Secured creditors, those holding deeds of trust or judgment liens, continue to be secured by the property but they may not take other action to collect from the debtor.

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BASIS POINT

One one-hundredth of one percent. Used to describe the amount of change in yield in many debt instruments, including mortgages.

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BELLY UP

Term used to describe a failed real estate project.

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BENCHMARK

A permanent reference mark for surveyors.

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BENEFICIARY

A person named to receive a benefit from a TRUST. A contingent beneficiary has conditions attached to his rights, usually someone else must die first.

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BI-WEEKLY