|
Foreclosure Related Terms.
A.
Abstract of Title - A condensed
history or summary of all transactions affecting a
particular tract of land.
Adjustable Rate Mortgages -
Mortgages with an interest rate that may change up or
down depending on an indicator. These are usually based
something like the current Treasury bill rate.
Affidavit - A sworn statement in
writing.
All-Inclusive Title insurance - This
means that most title insurance charges are included in
one price.
Amortize - To reduce a debt by means
of regular periodic payments which include amounts
applicable to both principal and interest.
APR - Annual percentage rate. On
some mortgages the APR is higher than your actual
mortgage rate.
Assumption - A mortgage that allows
a new owner to take over payments. The original borrower
remains liable on the mortgage note.
Return to Top of Glossary
_______________________________________________________________
D.
Deed - A written document by which
the ownership of land is transferred from one person to
another.
Deed of Trust - Instrument used to
secure a loan on real estate. Like a mortgage, generally
used in the South. The major difference is in how
foreclosures are handled. Foreclosures are much faster
with a Deed of Trust than with a Mortgage.
Deposit or Earnest Money - Advance
payment of part of the purchase price to bind a contract
for property.
Due-on-Sale Clause - A provision in
a mortgage or deed of trust which requires the loan to
be paid in full if a property is sold or transferred.
Return to Top of Glossary
_______________________________________________________________
E.
Equity - The interest or value which
an owner has in real estate over and above the debts
against it.
Escrow - (1) A procedure whereby a
disinterested third party handles legal documents and
funds on behalf of a seller and buyer. (2) Money that is
kept by the mortgage company to ensure that taxes can be
paid in full when due. This is paid up front on
settlement sheet lines 1001 - 1006 and is added to the
mortgage payment monthly over the principal and interest
figure.
Return to Top of Glossary
_______________________________________________________________
F.
FNMA (Fannie-Mae) - The Federal
National Mortgage Association, a federally sponsored
private corporation which provides a secondary market
for housing mortgages.
Fixed Rate Mortgages - Mortgages
with a fixed interest rate. You payment for principal
and interest will not change for the life of the loan.
Your monthly payment may change if taxes or insurance
rates change.
FHA - The Federal Housing Administration.
An agency of the federal government which insures
private loans for financing of new and existing housing
and for home repairs under government approved programs.
FHLMC (Freddie Mac) - Federal Home Loan
Mortgage Corporation. An affiliate of the
Federal Home Loan Bank, which creates a secondary market
in conventional residential loan and FHA and VA loans by
purchasing mortgages from members of the Federal Reserve
System and the Federal Home Loan Bank System.
Foreclosure - Legal process by which
a mortgagor of real property is deprived of his interest
in that property due to failure to comply with terms and
conditions of the mortgage.
Return to Top of Glossary
_______________________________________________________________
G.
Grantee - A person who acquires an
interest in land by deed, grant or other written
instrument.
Grantor - A person who, by a written
instrument, transfers to another interest in land.
Return to Top of Glossary
_______________________________________________________________
H.
Hazard insurance - The homeowner's
insurance policy.
Heir - One who might inherit or
succeed to an interest in lands under the rules of law
applicable where an individual dies without leaving a
will.
Return to Top of Glossary
_______________________________________________________________
I.
In personam - Directed at specific
persons rather than against property or generally for
all people.
In rem - Pertaining to property or
people in general.
Interest only payments - A mortgage
where only the interest is paid on a monthly basis. This
means that the buyer gets no equity. This is only used
on some purchase money mortgages where the buyer is
responsible for paying the seller the entire amount of
the second mortgage at some time in the future.
Instrument - A written document.
Return to Top of Glossary
_______________________________________________________________
J.
Judgment - A decree of a court.
Return to Top of Glossary
_______________________________________________________________
L.
Loan origination fees - Money
required by the lender to be paid to start the work of
approving a mortgage.
Lien - A hold, a claim or charge
allowed a creditor upon the lands of a debtor.
Return to Top of Glossary
_______________________________________________________________
M.
Mortgage Note - An instrument used
to encumber land as security for a debt. This document
gives the mortgage company "in rem" jurisdiction over
the mortgagor.
Mortgagee - A designation for the
mortgage lender on lands.
Mortgagor - A designation for the
mortgage borrower on lands.
MIP - Mortgage insurance protection
Return to Top of Glossary
_______________________________________________________________
N.
Note - A written promise to pay a
certain amount of money, at a certain time, or in a
certain number of installments. It usually provides for
payment of interest and its payment is at times secured
by a mortgage.
The mortgage note document gives the mortgage company
"in rem" jurisdiction over the mortgagor.
The promissory note document gives the mortgage
company "in personam" jurisdiction over the mortgagor.
Return to Top of Glossary
_______________________________________________________________
P.
P.O.C. - Paid outside of closing.
Sometimes the lender requests this money before
settlement. If you pay any charges before settlement
they should be written on the settlement sheet. They are
written on the proper line outside of your column. They
should also be marked P.O.C.
Point - a percentage point. Equal to
one percent of the loan amount.
Power of Attorney - An instrument
authorizing another to act on one's behalf as his agent
or attorney.
PMI - Private mortgage insurance.
PMM - Purchase money mortgage. A
mortgage given by the seller simultaneously with the
purchase of real estate to secure the unpaid balance of
the purchase price.
Pro-Rate - To allocate between
seller and buyer their proportionate share of an
obligation paid or due.
Promissory Note a promise to pay.
The promissory note document gives the mortgage company
"in personam" jurisdiction over the mortgagor.
Return to Top of Glossary
_______________________________________________________________
R.
Real Property - Land and that which
is affixed to it.
Reissue Rate - A reduced rate of
title insurance premium applicable in cases where the
owner of the land has been previously insured in an
owner's policy by the insurer within a certain time.
Return to Top of Glossary
_______________________________________________________________
S.
Second Mortgage - A mortgage, the
lien of which is subordinate to that of another
mortgage.
Survey - The process of measuring
land to determine its size, location and physical
description and the resulting drawing or map.
Return to Top of Glossary
_______________________________________________________________
T.
Tax Service Fee - A fee paid to the
mortgage company to verify that they actually pay the
real estate taxes.
Title - The evidence or right a
person has to the ownership and possession of land.
Title Insurance - Insurance against
loss or damage resulting in defects or failure of title
to a particular parcel of real property.
Title Insurance Binder or Commitment
- A report issued by a title insurance company binding
or committing the title insurance company to issue the
form of policy designated in the commitment or binder
upon compliance with and satisfaction of requirements
set forth in the commitment or binder.
Title Search - An examination of
public records and court decisions to disclose the
current facts regarding ownership of real estate.
Transfer taxes - Money paid to the
county and or state when property is sold.
_______________________________________________________________
V.
VA - The Veterans Administration.
They insure mortgages.
Return to Top of Glossary
_______________________________________________________________
W.
Will - A written document properly
witnessed, providing for the distribution of property
owned by the deceased.
Return to Top of Glossary
_______________________________________________________________ |