|
"K" |
|
K
word
- definition |
|
"L" |
|
L
word
- definition |
|
"M" |
|
Mediation
-
A
process where a neutral third party
intervenes between the disputing
parties to reach a satisfactory
solution.
- |
back to top
| - |
|
Mortgage
-
A legal
document used to secure the performance
of an obligation. The term mortgage,
which is derived from the French words
mort meaning "dead" and gage meaning
"pledge," is appropriate in that the
pledge is extinguished only after the
debt is paid. In the usual real estate
transaction, the buyer seeks to borrow
money to pay the seller the difference
between the down payment and the
purchase price. When the lender
(mortgagee) lends the money, the
buyer/borrower (mortgagor) is required
to sign a promissory note for the amount
borrowed and to execute a mortgage to
secure the debt. The purpose of the
mortgage note is to create a personal
liability for payment on the part of the
mortgagor; the purpose of the mortgage
is to create a lien on the mortgaged
property as security for the debt.
- |
back to top
| - |
|
Mortgage
banker
-
A person, corporation or firm (not
otherwise in banking and finance) that
normally provides its own funds for
mortgage financing as opposed to savings
and loan associations or commercial
banks that use other people's money -
namely that of their depositors--to
originate mortgage loans. Although some
mortgage bankers do supply permanent
long-term financing, the majority
specialize in supplying short-term and
interim financing, either through their
own resources or by borrowing from
commercial sources.
- |
back to top
| -
|
|
Mortgage broker/company
-
A
person or firm that acts as an
intermediary between borrower and
lender; one who, for compensation or
gain, negotiates, sells or arranges
loans and sometimes continues to service
the loans; also called a loan broker.
Loans originated by the mortgage broker
are closed in the lender's name and are
usually serviced by the lender. This is
in contrast to mortgage bankers, who not
only close loans in their own names but
continue to service them as well. Many
mortgage brokers are also licensed as
real estate brokers and provide these
financing services as supplements to
their realty services.
- |
back to top
| -
|
|
Mortgage insurance
-
A kind
of insurance policy that will pay
off the mortgage balance in the
event of death, and in some
policies, disability. Premiums are
paid with the regular monthly
mortgage payment.
- |
back to top
| -
|
|
Mortgage insurance premiums (MIP)
-
Most FHA loans
require the borrower to pay two mortgage
insurance premiums: one upfront paid at
closing; the second is an annual premium
based on the loan balance each year.
- |
back to top
| -
|
|
Mortgage lien
-
A lien or charge on the property of
a mortgagor that secures the
underlying debt obligations.
- |
back to top
| -
|
|
Mortgage loan disclosure statement
-
Borrower disclosure mandated by Article
7 of the Real Estate Law
- |
back to top
| -
|
|
Mortgagee
-
In a mortgage transaction, the party who receives and holds a
mortgage as security for a debt, the
lender. A lender or creditor who
holds a mortgage as security for
payment of an obligation.
- |
back to top
| -
|
|
Mutual consent
-
A meeting of the minds; a mutual assent of the parties to the
formation of the contract.
- |
back to top
| -
|
|
Mutual mortgage insurance
-
Insurance premiums and other specified
FHA revenues are paid into one of four
FHA funds. Losses due to foreclosure are
met from these funds.
- |
back to top
| -
|
|
"N" |
|
Non-judicial foreclosure -
The process of selling real property
under a power of sale in a mortgage or
deed of trust that is in default. One
disadvantage is that the lender cannot
obtain a deficiency judgment. Also, some
title insurance companies are reluctant
to issue a policy unless a court has
judicially foreclosed the mortgagor's
interest.
- |
back to top
| - |
|
Note (original note) -
A
document signed by the borrower of a
loan and stating the loan amount, the
interest rate, the time and method of
repayment and the obligation to repay.
The note serves as evidence of the debt.
When secured by a mortgage, it is called
a mortgage note, and the mortgagee is
named as the payee. In a trust deed, the
note is usually made payable to the
bearer or holder. The note may also
contain some of the same provisions as
in the mortgage or trust deed document,
such as prepayment or acceleration..
-
|
back to top
| - |
|
Notice of delinquency -
In junior financing, where the borrower
gives the senior lender permission to
notify the junior lender in the event of
a default.
-
|
back to top
| - |
|
"O" |
|
O
word
- definition |
|
"P" |
|
P
word
- definition |
|
"Q" |
|
Q
word
- definition |
|
"R" |
|
Receiver
-
An independent party appointed by a
court to impartially receive,
preserve and manage property that is
involved in litigation, pending
final disposition of the matter
before the court.
-
|
back to top
| -
|
|
Recission
-
An
option in the discharge of a
contract. If both parties agree,
they may rescind a contract in a
process called recission.
-
|
back to top
| - |
|
Recognition
clause
-
A clause found in some blanket
mortgages used to purchase a tract
of land for subdivision development
providing for protection of the
rights of the ultimate buyers of
individual lots in case of default
by the developer.
-
|
back to top
| - |
|
Recognized capital gains
-
The recognized capital gain from the
sale of an asset subject to income
taxes.
-
|
back to top
| -
|
|
"S" |
|
S
word
- definition |
|
"T" |
|
T
word
- definition |
|
"U" |
|
U
word
- definition |
|
"V" |
|
V
word
- definition |
|
"W" |
|
Waiver
-
To give up a right voluntarily.
-
|
back to top
| -
|
|
Warranty
-
A promise that certain stated facts are
true. A guaranty by the seller,
covering the title as well as the
physical condition of the property.
A warranty is different from a
representation in that a
representation is a statement made
in the course of negotiations
leading up to the sale, but not
incorporated into the contract. A
warranty, on the other hand, is a
statement in the contract asserting
the truth of certain things about
the property.
-
|
back to top
| -
|
|
Warranty deed
-
A deed in
which the grantor fully warrants
good clear title to the premises;
also called a general warranty deed.
The usual covenants of title are
covenant of seizing (possession),
covenant of quiet enjoyment,
covenant against encumbrances,
covenant of warranty forever and
covenant of further assurance. A
warranty deed warrants the title,
not the quality of construction of
the real property. A warranty deed
is used in most real estate deed
transfers and offers the greatest
protection of any deed.
-
|
back to top
| - |
|
Will-buy buyers
-
Will-buy
buyers are bargain-hunters looking
for motivated "must-sell" sellers
-
|
back to top
| -
|
|
Workout
-
The various ways to offset a
foreclosure
-
|
back to top
| - |
|
Wraparound mortgage
-
A method of financing in
which the new mortgage is placed in
a secondary or subordinate position;
the new mortgage includes both the
unpaid principal balance of the
first mortgage and whatever
additional sums are advanced by the
lender. Sometimes called an
all-inclusive loan, an overriding
loan or an overlapping loan. In
essence, it is an additional
mortgage in which another lender
refinances a borrower by lending an
amount over the existing first
mortgage amount, without cashing out
or disturbing the existence of the
first mortgage. The entire loan
combines two or more debts and is
treated as a single obligation, and
the wrap, or secondary, mortgagee
pays the obligations of the first
mortgage from the total payments
received. While the wraparound
lender makes the debt service
payments on the first mortgage, the
lender does not assume liability for
this first lien. A default on the
wraparound mortgage would usually
result in a default on the
underlying mortgage.
-
|
back to top
| - |
|
Writ
of execution-
A court order authorizing and
directing an officer of the court
(sheriff, police officer) to levy and
sell property of the defendant to
satisfy a judgment.
-
|
back to top
| -
|
