Abandonment
Abandonment is when you give up all your rights or claims to property that you rightfully own.
Acceleration Clause
A mortgage acceleration clause is a common provision of a mortgage or note providing the holder with the right to demand that the full outstanding balance is immediately due in the event of default.
Adjustable Rate Mortgage (ARM)
A mortgage where the interest rate adjusts during the course of the loan. Often the rate is reduced at the beginning of the loan (called a teaser rate) in which case it will adjust higher during the loan period.
Amortization
Amortization is the gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time.
Appraisal
A professional opinion, usually written, of the market value of a property, such as a home, business, or other asset whose market price is not easily determined.
As Is
As-Is is a legal term and concept used to disclaim liability for an item being sold. “As-is” denotes that the seller is selling, and the buyer is buying an item in whatever condition it presently exists, and that the buyer is accepting the item “with all faults”, whether or not immediately apparent.
Assessed Valuation
Assessed Valuation is the value of real estate for tax purposes.
Assignment
Assignment is the transfer of a claim, right, interest, or property from one to another.
Assignment of Rents
Assignment of rents is a legal document that assigns all rents and income from a property to the mortgagee if a mortgagor defaults.
Assumption of Mortgage
An Assumption of Mortgage occurs when you you purchase a home and assume a pre-existing mortgage. You undertake to fulfill the obligations of the existing loan agreement the seller made with the lender. The obligations are similar to those that you would incur if you took out a new mortgage. When assuming a mortgage, you become personally liable for the payment of principal and interest.
Auction
An auction is a public sale in which property or items of merchandise are sold to the highest bidder.
Automatic Stay
Automatic stay is an injunction issued automatically upon the filing of a bankruptcy case, which prohibits collection actions against the debtor, the debtor’s property or the property of the estate.
Balloon Payment
Balloon Payment is the large installment payment required at the end of the term of the balloon mortgage to pay off the remaining balance.
Balloon Mortgage
A Balloon Mortgage is a short-term, fixed-rate loan with fixed monthly payments for a set number of years and a large final balloon payment of the remainder of the principal.
Bankruptcy
Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. See also Chapter 7 and Chapter 13.
Beneficiary
A beneficiary is someone named to receive property or benefits in a will. In a trust a beneficiary is the person who is to receive benefits from the trust.
Bill of Sale
A Bill of Sale is a document used to transfer title (ownership) of personal property.
Broker Price Opinion
A Brokers Price Opinion (BPO) is a real estate broker’s estimation of the price for which property can reasonably be sold. Not to be confused with an Appraisal, which is much more detailed.
Buy and Bail
Buy and Bail is a when a homeowner with good credit buys a second house with the intent to let the first home go to foreclosure after they move into the new home. It’s usually because the first home is worth much less than what they paid for it and just consider it a bad investment that they can walk away from.
Capital Improvement
Capital Improvement is any improvement that extends the life or increases the value of a piece of property.
Certificate of Sale
A Certificate of Sale is a document given to the winning bidder at a foreclosure sale stating their rights to the property once the borrowers redemption period has expired.
Certificate of Title
A Certificate of Title is a document designating the legal owner of a parcel of real estate.
Chain of Title
The chronological list of recorded documents affecting title to a specific parcel of real property.
Chapter 13
The Chapter in the Bankruptcy Code generally permitting a debtor to enter into a court ordered repayment plan for a period of three to five years while still keeping any property that would be otherwise liquidated in a Chapter 7 bankruptcy.
Chapter 7
In bankruptcy, a Chapter 7 is a liquidation case, as opposed to a reorganization under Chapter 13. In a Chapter 7 case, the debtor surrenders all non-exempt property to the bankruptcy trustee who is responsible for selling the assets and distributing the proceeds to creditors.
Clear Title
A title to a property that is free of legal challenges to ownership.
Cloud on the Title
Is an outstanding claim or encumbrance that, if valid, would affect or impair the owner’s title.
Collateral
Property pledged as security to a debt. If the borrower fails to repay the loan, the lender may gain ownership of the collateral and sell it to recover the money.
Color of Title
A condition which has the appearance of good title, but which in fact is not valid title, as where title is founded on some written document which on its face appears valid and effective, but which is actually invalid.
Condemnation
The taking of private property for public use, with adequate compensation to the owner, under the right of eminent domain.
Conditional Sales Contract
A sale in which the title to property or goods remains with the seller until the purchaser has fulfilled the terms of the contract, usually payment in full.
Conforming Loans
A conforming loan adheres to the guidelines established by Fannie Mae or Freddie Mac. These guidelines establish maximum loan amounts, down payment, credit and income requirements and acceptable property types. Lenders that make loans according to these guidelines may sell them to Fannie Mae or Freddie Mac. Conforming loans make up the majority of loans in the U.S.
Conservatorship
A conservatorship is created by a court to manage the property of a person who lacks the capacity to manage his or her own property.
Consideration
Anything of value given to induce another to enter into a contract including money, service or a promise. This is essential to a valid contract.
Constructive Notice
The recording of a document in the public records designed to give adequate legal notice.
Contingency Fee
A method of paying a lawyer such that the lawyer receives a percentage of the money her client obtains after settling or winning the case.
Contract for Deed
A contract ordinarily used in connection with the sale of property in cases when the seller does not wish to convey title until all or the buyer pays a certain part of the purchase price.
Conventional Loan
A mortgage loan neither insured by FHA nor guaranteed by VA.
Conveyance
Transfer of ownership of real estate property from one individual to another.
Covenants
A series of regulations set up by neighborhoods or housing developments that govern various construction features, such as setbacks, fence heights and types, house paint colors, etc.
Credit
An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.
Cured Default
Correction of a borrower’s failure to make payments or meet the terms of a loan to the lender’s satisfaction; made up all missed payments.
Damages
A sum of money paid in compensation for loss or injury.
Debt Service
The combined principal and interest due on your loan each month over a period of time.
Decree
A judgment or order issued by a court.
Deed
A formal written instrument by which the title of the property is transferred from one owner to another.
Deed in Lieu of Foreclosure
A process whereby the owner, with the approval of the lender, deeds the property to the lender to avoid foreclosure.
Deed of Trust (Trust Deed)
The document used in some states, instead of a mortgage, to secure the repayment of money borrowed.
Default
Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.
Defeasance Clause
A clause in a mortgage which ensures that, once the borrower has met all of her obligations under the terms of the mortgage and paid out the entire principle and interest borrowed, the lenders legal interest in the property is extinguished.
Deficiency Judgment
A personal judgment levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.
Delinquency
When a borrower does not make a loan payment when it is due.
Demand Note
A promissory note that calls for principal to be payable on demand. In recent years, courts have significantly restricted the circumstances under which a bank could make and enforce a demand for repayment under a demand note.
Discharge of Indebtedness or Debt
A lender tells a borrower that a loan doesn’t have to be paid back.
Discovery
The process by which the prosecutor and defense attorney learn of the evidence the other party will present at trial.
Documentary Transfer Tax
A tax on recorded transfers of title to real property.
Down Payment
The amount of cash a buyer puts toward a purchase of a house.
Due on Sale
A clause in a mortgage agreement requiring the loan be paid off, if there is a transfer of ownership on the property.
Earnest Money
Down payment or a small part of the purchase price made by a purchaser as evidence of good faith.
Easement
The right of a person, government agency, or public utility company to use public or private land owned by another for a specific purpose.
Encroachment
Anything belonging to one landowner that extends onto an adjacent landowner’s property is considered an encroachment. A fence that is a few inches over the property line is one example.
Entry and Possession
A foreclosure method used in some states which the lender either peacefully or by court order takes possession of the property from the borrower.
Equity
Equity is the difference between the home’s fair market value and the unpaid balance of the mortgage and any outstanding liens.
Equity Loan
A loan based on the borrower’s equity in his or her home.
Equity Skimmer
The “equity skimmers” are those who convince the homeowner to sign over their home, promising them that they will pay off the existing mortgage, and then proceed to either rent out the property and pocket the rental proceeds and tenant security deposits, or resell the property on an installment payment ” and keep the monthly payments but never make a mortgage payment. In either case, because the “skimmer” never makes a payments the mortgage lender forecloses on the property.
Escrow
The depositing of money or documents from a real estate transaction with an impartial third party (escrow agent), to be disbursed to the rightful party when all conditions of the transaction have been met. Funds held by the lender, set aside for payment of taxes and possible property and mortgage insurance and other recurring charges against real property is also referred to as Escrow.
Estate
All that a person or entity owns, including both real and personal property. (In Probate Matters) The property that one leaves after death; the collective assets and liabilities of a person that has died.
Estoppel Certificate
An instrument executed by the mortgagor setting forth the status of and the balance due on the mortgage as of the date of the execution of the certificate.
Eviction
The removal of a person from a property.
Exclusive Right to Sell
A written contract giving a licensed real estate agent the exclusive right to sell a property for a specified time. The owner agrees to pay a full commission to the broker even though the owner may sell the property.
Extension Agreement
An agreement to extend the terms of a document or contract. An extension agreement in a mortgage, for example, grants additional time to perform one or more of its provisions.
Fair Credit Reporting Act
A United States federal law designed to help ensure that consumer reporting agencies act fairly, impartially, and with respect for the consumer’s right to privacy when preparing consumer reports on individuals.
Fair Market Value
Is the amount a willing and knowledgeable buyer would pay and seller would accept in a property transaction.
Fannie Mae
Nickname for Federal National Mortgage Corporation (FNMA), a tax-paying corporation created by congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional home mortgages.
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures consumer deposits in a bank or savings and loan for up to $100,000 per account.
Federal Home Loan Mortgage Corporation (Freddie Mac)
A quasi-governmental, federally-sponsored organization that acts as a secondary market investor to buy and sell mortgage loans. FHLMC sets many of the guidelines for conventional mortgage loans, as does FNMA.
Federal Housing Administration (FHA)
An agency of the US Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.
Federal National Mortgage Association (Fannie Mae)
A government-sponsored corporation that purchases mortgages from lenders, repackages them and sells them. The agency, which is known as Fannie Mae, deals in both government-backed and conventional mortgages
Federal Savings and Loan Insurance Corporation (FSLIC)
A federal institution that insures deposits of federally chartered savings and loan associations.
FHA Mortgage
A mortgage loan insured by the Federal Housing Administration.
First Mortgage
A real estate loan that has priority over any subsequently recorded mortgages.
For Sale by Owner (FSBO)
A home that’s offered for sale without the service of a real estate agent.
Forbearance
When loan payments are temporarily postponed because of the borrower’s financial hardship. During a forbearance interest continues to accrue on the loan.
Foreclosure
A procedure by which the mortgagee (lender) either takes title to or forces the sale of the mortgagor’s (borrower’s) property in satisfaction of a debt.
Fraud
The conversion and obtaining of money or property by false pretense.
Government National Mortgage Association (Ginnie Mae)
Also known as Ginnie Mae, provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.
Grace Period
The period of time in a loan after the due date when a payment may be made before the lender applies a late penalty to the payment.
Grantee
The person who acquires a property by grant deed, such as, a buyer.
Grantor
A person conveying real estate by deed; the seller.
Guarantee
A pledge by a third party to repay a loan in the event that the borrower defaults.
Hearing
In law, a hearing is a proceeding before a court or other decision-making body or officer.
Homestead
Property that is owned and occupied as the family home. In many states a portion of the area or value of this land is protected or exempt from judgments or debt.
Housing and Urban Development (HUD)
A US government agency established to implement federal housing and community development programs; oversees the Federal Housing Administration.
Impound Account
The impound account is an account established by the lender to pay a borrower’s tax and insurance expenses.
Incumbrance
Any liability, lien, charge, or claim that is placed on real estate by businesses, individuals, tax collecting organizations or other persons that bind the property and possibly affect the sale or transfer at a later date.
Instrument
Any written document having a legal effect.
Involuntary Lien
A lien such as a tax lien, judgment lien, etc., which attaches to property without the consent of the owner rather than a mortgage lien to which the owner agrees.
Jingle Mail
The practice of abandoning one’s house and mailing the keys back to the creditor because the mortgage is worth more than the house itself.
Joint Tenancy
A way in which two or more people may hold title to property together. Owning as joint tenants means each owner has an equal right to the entire property, that none of the owners may sell, bequeath or encumber their portion of the property without the consent of the other owners and that, in the event of the death of one of the owners, the surviving owners automatically retain title to the entire property by “Right of Survivorship”.
Judgment
The official decision of the court.
Judicial Foreclosure
A means of selling property through a court procedure to satisfy a lien.
Junior Lien Holder
A lien holder that does not have first priority but is still being used as security for the payment of a debt or discharge of an obligation.
Land Sale Contract
An agreement to sell and purchase wherein legal title is withheld from the purchaser until such time as the required payments to the seller have been completed.
Lease With Option To Buy
A lease under which a lessee has the future right to purchase the leased property under specified conditions.
Lender Liability
An informal term referring to various manifestations of actual or potential legal liability arising from the conduct of a financial institution lender.
Liability
The legal obligation to pay a debt.
Lien
A legal claim on a property by a lender or other entity that is owed money by the owner of the property.
Life Estate
A form of estate giving a beneficiary all property rights except the right to sell. The right to the estate is terminated upon the death of the beneficiary.
Life Tenant
A tenant whose legal right to retain possession of buildings or lands lasts as long as they live.
Lis Pendens
A publicly recorded notice of a pending lawsuit against a property owner that may affect the ownership of a property. Some states require lenders to file a lis pendens to begin the foreclosure process if a borrower is in default on loan payments.
Listing Agreement
Contract between a Real Estate Broker and an owner of real property whereby it is agreed that the broker will perform as the seller’s agent for the express purpose of selling the property under contract. This agreement sets the listing price and terms in return for a fee or commission.
Loan Modification
A procedure whereby a loans payment plan is altered due to the hardship of the borrower. This can include the rate, term and monthly payment amounts.
Loan Pool
A block of loans held in trust and pledged as security for the issuance of a guarantee certificate, which is called a mortgage-backed security.
Loan Processor
The individual who makes sure that all documents are collected and filed in order that a loan can be processed and underwritten in a timely manner.
Marketable Title
Title to property that is free of objectionable encumbrances and liens.
Mechanic’s Lien
A lien against a house created under state laws that give a person who makes repairs or improvements to the house the right to place a lien against the property if that person is not paid.
Metes and Bounds
A time-honored land surveying method of describing land in terms of shape and boundary dimensions.
Misrepresentation
In contract law, a misrepresentation is a false statement of fact made by one party to another party and has the effect of inducing that party into the contract.
Mortgage
A legal instrument in which property serves as security for the repayment of a loan. In some states, a deed of trust is used rather than a mortgage.
Mortgage Commitment
A formal indication, by a lending institution that it will grant a mortgage loan on property, in a certain specified amount and on certain specified terms.
Mortgage Guaranty Insurance Corporation (MGIC)
Mortgage Guaranty Insurance Corporation is the largest provider of private mortgage insurance in the U.S.A.
Mortgage Instrument
A written document evidencing a mortgage.
Mortgage Lien
Lien rights given to the lender by the borrower in exchange for the loan.
Mortgagee
The person or company who receives the mortgage as a pledge for repayment of the loan. The mortgage lender.
Mortgagee’s Title Policy
A policy that protects the lender from future claims to ownership of the mortgaged property. Generally required by the lender as a condition of making a mortgage.
Mortgagor
The owner of real estate who pledges his property as security for the repayment of a debt; also known as the borrower.
Motion to Lift Stay
A formal request to a bankruptcy court to dissolve an automatic stay that prevents a lender from foreclosing.
Negative Equity
A situation that occurs when the amount loaned against a property is in excess of the market value of the property.
Non-judicial Foreclosure
A foreclosure by having property sold to satisfy the debt without going through court.
Notary Public
A public official who attests or certifies writings to make the signatures legally authentic.
Note
A legal document that acknowledges a debt and promises to pay. Also referred to as a Promissory Note.
Notice Of Default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.
Notice Of Rescission
A written document that cancels or annuls the effect of a notice of default when a default has been cured (reinstated).
Open Mortgage
A mortgage which may be prepaid in full or in part at any time during that life of the mortgage without notice, bonus or penalty.
Origination
The evaluation, preparation, and submission of a proposed mortgage loan.
Owner-Occupied
This means that the property is the owner’s primary residence.
Partial Payments
Payments that are less than the full payment the borrower owes on a loan.
Performance Bond
A bond that binds a surety company to complete a construction contract if the contractor defaults.
Plat Book
A public record containing maps of land and showing the division of the land into streets, blocks, and lots and indicating the measurements of the individual parcels.
PMI-Assisted Presale
Private mortgage insurance (PMI) company pays part of loss when house with negative equity (loans exceed property value) is sold by regular means prior to foreclosure.
Points
Are fees paid to the lender for the loan. One point equals 1 percent of the loan amount.
Posting
Placing legal notice of a foreclosure sale on public display as legally specified.
Power Of Attorney
A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.
Power-Of-Sale Clause
Part of a mortgage contract that allows the lender to repossess and sell a property without court involvement when the loan is in default.
Prepaids
Certain items must be paid in advance when you close on a mortgage transaction. These items include real estate taxes and hazard insurance.
Prepayment Clause
A term in a mortgage that establishes the rules regarding extra payments toward principal.
Private Lender
Usually some person or entity other than a bank or mortgage company lending money on real estate.
Private Mortgage Insurance (PMI)
Insurance against a loss by a lender in the event of default by a borrower (mortgagor). The insurance is similar to insurance by a governmental agency such as FHA, except that is issued by a private insurance company. The premium is paid by the borrower and is included in the mortgage payment.
Prorations
Division of financial responsibility between buyer and seller for such items as loan interest, taxes, rents and utility bills.
Purchase Money Mortgage
An agreement whereby financing provided by the seller is included in the purchase price.
Qualifying
The process whereby the lender assesses the borrowers’ ability to re-pay the loan.
Quiet Title Suit
A lawsuit that is filed to determine who has the legal rights to a property.
Quitclaim Deed
A deed relinquishing all interest, title, or claim an owner has in a property. A quitclaim deed implies no warranty.
Real Estate Owned (REO)
The Bank has foreclosed on the property, and now owns it.
Recasting
Means to restructure a loan with a new interest rate and term; this can be the same loan from the same lender.
Receivership
A form of bankruptcy in which a receiver is appointed to run the company and to recoup as many debts as possible.
Reconveyance
When a borrower completely pays off the mortgage, the property is reconveyed to them from the lender.
Recording
To file a legal instrument in the public records.
Recourse
The right of a lender to reclaim both money and collateral from a borrower who has defaulted on a loan.
Redemption
The right of a mortgagor who has defaulted on the mortgage note to redeem or get back his title to the property by paying off the entire mortgage note prior to the foreclosure sale.
Refinance
The process of paying off one loan with the proceeds from a new loan using the same property as security.
Release Clause
A provision in a Mortgage that gives the owner of the property the privilege of paying off a portion of the mortgage indebtedness, thus freeing a portion of the property from the mortgage.
Release Of Liability
The document that relieves a person who is obligated to pay a loan of any further obligations. It may be obtained when a buyer takes over the payments on the seller’s old loan, provided the buyer meets the lender’s standards for income and creditworthiness. If granted, the release of liability means the seller will not be responsible if the buyer fails to pay.
Repayment Plan
An agreement between a lender and a borrower who is delinquent on his or her mortgage payments, in which the borrower agrees to make additional payments to pay down past due amounts while still making regularly scheduled payments.
Request For Notice Of Default
A recorded document that obligates the holder of the first mortgage lien to notify subordinate lien holders in the event of default by the borrower.
Right Of Rescission
The legal right, usually three business days, to void or cancel a mortgage contract in such a way as to treat the contract as if it never existed. Right of rescission is not applicable to mortgages made to purchase a home, but is applicable to other mortgages, such as home equity loans.
Right Of Survivorship
Occurs when a joint property owner has provided for the passing of all property into the hands of the surviving joint owner. This will forego the need for probate.
Sales Contract
A written agreement between competent parties stating all terms and conditions of a sale.
Second Mortgage
A loan that is in second position behind the first mortgage. Sometimes used as additional down payment or to pull equity from the home.
Secondary Market
A market comprising investors like GNMA, FHLMC and FNMA, which buy large numbers of mortgages from the primary lenders and sell them to other investors.
Servicing
Supervising and administering a loan after it has been made. This involves such things as collecting the payments, keeping accounting records, computing interest and principal, etc.
Short Sale
A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage. This usually occurs when the borrower is in foreclosure.
Simple Assumption
A type of loan assumption in which the original borrower remains secondarily liable should the assumptor default.
Special Assessment
An assessment which is not customarily levied and which is made against only those specific parcels of property directly benefiting therefrom. Also it may be an amount of money levied upon owners in a homeowners’ association or condo association for the purpose of public improvements.
Subdivision
A housing development that is created by dividing a tract of land into individual lots for sale or lease.
Subject-To Clause
A clause in a deed, stating the grantee takes title “subject to” an existing mortgage. The original mortgagor is alone responsible for any deficiency. Differs from an “assumption” clause, whereby the grantee “assumes” and agrees to pay the existing mortgage.
Subordinate Clause
Is a statement in a mortgage giving priority to a mortgage that was taken out at later date.
Substitution of Trustee
A document that is recorded to change the trustee named in a deed of trust.
Summary Judgment
A judgment rendered by the court prior to a verdict because no material issue of fact exists and one party or the other is entitled to a judgment.
Survey
The process by which boundaries are measured and land areas are determined; usually performed by a land surveyor.
Tax Sale
A sale of real property ordered by the court in order to raise money to cover delinquent taxes.
Tenancy At Will
A lease which requires little or no notice of termination. It is used in special circumstances wherein both the lessor and lessee agree that the lease can be terminated by either party. It is of uncertain duration.
Tenancy By The Entirety
Joint ownership of a property by husband and wife. Ownership is passed to the surviving spouse, known as the right of survivorship.
Tenancy In Common
A form of ownership in which two or more owners hold an undivided (though not necessarily equal) interest in the property, with no rights to survivorship.
Title
The legal evidence of ownership in a property.
Title Defect
Unresolved claim against the ownership of property that prevents presentation of a marketable title. Such claims may arise from failure of the owner’s spouse, or former part owner, to sign a deed, current liens against the property, or an interruption in the title records of a property.
Title Insurance
An insurance policy that protects the buyer or the lender against loss of their interest in property due to legal defects in the title.
Title Report
A document indicating the current state of title. The report includes information on the current ownership, outstanding deeds of trust or mortgages, liens, easements, covenants, restrictions, and any defects.
Title Search
The process of reviewing all recorded transactions in the public record to determine whether any title defects exist that could interfere with the clear transfer of ownership of the property.
Trust Deed
An instrument used in place of a mortgage in many states to secure the property as collateral in a loan.
Trustee
The third person who holds legal title to property for a special purpose without being the actual owner. A trustee is one of the parties to every trust deed.
Trustee’s Deed
A document conveying ownership of a property.
Trustee’s Sale
Sale of property in foreclosure by the trustee, rather than through a judicial sale.
Trustee’s Sale Guarantee
A special title report, for trustees only, that discloses all items pertaining to the ownership interests and encumbrances on a property in foreclosure.
Truth In Lending Act
Also known as Regulation Z, this federal regulation requires a lender to provide borrowers with a disclosure estimating the costs of the loan including your total finance charge and the Annual Percentage Rate (APR) within three business days of the application for a loan. This act is designed to provide consumers with a standard method of comparing the financing costs from lender to lender.
Underwriter
A person who performs the analysis of the risk involved in making a loan to a potential home buyer based on credit, employment, assets, and other factors; and the matching of this risk to an appropriate rate and term or loan amount.
Undivided Interest
Ownership of real estate by joint tenants or tenants in common under the same title.
Upside-Down Home
The amount owed on the house is more than the value. Also referred to as “under water”.
Vendee’s Lien
Legal right of a purchaser of a piece of real estate to the paid purchase price plus direct costs of acquisition, if the seller fails to render the deed to the property.
Verification Of Deposit
A form completed by a bank or other depository to verify available funds. Normally bank statements are used in lieu of this form.
Verification Of Employment
A document signed by the borrower’s employer verifying his/her position and salary.
Veterans Administration
An independent agency of the federal government which helps veterans obtain long-term, low down payment mortgages. The agency normally does this by guaranteeing a portion of a lender’s loans against loss.
Wage Earner’s Plan
See Chapter 13
Warranty Deed
A deed in which the grantor warrants or guarantees that good title is being conveyed.
Without Recourse
A type of mortgage which is secured by the property alone and does not become a liability of the borrower. Also known as a Non-Recourse loan.
Workout
A special process in which some lenders and property owners may seek a solution to impending foreclosure by a payment plan or refinance.
Wraparound Loan
Seller keeps original mortgage. Buyer makes payments to seller, who forwards a portion to the lender holding the original mortgage.
Writ of Execution
A writ of execution is a common court order granted by a court in an attempt to satisfy a judgment obtained by a plaintiff. When issuing a writ of execution, a court typically will order a sheriff or other similar official to levy property owned by a judgment debtor.
Writ of Garnishment
An order of the court whereby property, money, or credits in the possession of another person may be seized and applied to pay a debtor’s debt.
Writ Of Possession
A court may issue a Writ of Possession (real property) that authorizes the Sheriff to remove (evict) the occupants from a property.
