401(k)/403(b) Loan - Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans. Loans against 401K plans are izare an acceptable source of down payment for most types of loans.

"A" Sale - The first tax lien sale for tax delinquent properties in Indiana is known as the "A" sale.

Abandonment- When an owner or renter gives up their property and leaves without passing ownership or tenancy rights to anyone else. The abandoner still owes any debts related to the property, unless the owed party cancels them. Abandoned properties are reclaimed by lenders or other entities with a prior interest.

Absentee Bid   (also called mail-in bid or sealed bid) - An absentee bid is used by an investor who is not able to physically   attend the auction. An absentee bid is generally mailed into or dropped off at the county office in a sealed envelope. The bid usually includes a bid registration form and payment, for either the deposit amount or the full amount of the bid. The money is returned to unsuccessful absentee bidders.

Abstract of Judgment - Summary of a judgment in a lawsuit; includes who won, who lost, amount owed, the court making the decisions, date of judgment, and winning attorney. Once recorded (filed with county clerk or recorder), it creates a general lien on judgment debtor's property that’s usually discovered by a title company in conjunction with property sale. Most title companies require the lien be paid as a condition of insuring resale.

Abstract of Title - A condensed, chronological history of ownership that includes transfers of title, rights, liens, judgments or taxes, or encumbrances affecting a specific parcel of real estate.

Acceleration Clause - Part of trust deed or mortgage that gives lender right to call/demand all money owed as due and payable immediately in the event a specific event (such as a sale) occurs.

Acceleration clause - A clause in a mortgage that allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are borrower default on the loan or if the borrower transfers title to another individual without informing the lender (due on sale).

Accrued Items of Expense - Incurred expenses not yet payable; seller's accrued expenses credited to purchaser in closing statement.

Acknowledgment - The act by which a party executing a legal document goes before an authorized officer or notary public and declares the same to be his or her voluntary act and deed.

Action to Quiet Title- Is a court action to establish ownership of property. The name is derived from the action of "quieting" and solving the disagreement. However, this action does not completely clear the issue, unlike a title registration.

Ad Valorem Tax - (Latin for according to value) is a tax based on the value of real estate or personal property. It is more common than a specific duty, a tax based on the quantity of an item, such as cents per kilogram, regardless of price.  An ad valorem tax is typically imposed at the time of a transaction (a sales tax or value-added tax [VAT]), but it may be imposed on an annual basis (real or personal property tax) or in connection with another significant event (inheritance tax, surrendering citizenship,[1] or tariffs). In some countries stamp duty is imposed as an ad valorem tax.

Adjourn Sale - Tax lien certificates that remain unsold after Indiana's primary June sale are offered again through "adjourn sales".

Adjustable Rate- Is any interest rate that changes on a periodic basis. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. For example, you might see a rate set at "prime plus 2%". This means that the rate on the loan will always be 2% higher than the prime rate, which changes regularly to take into account changes in the inflation rate. For an individual taking out a loan when rates are low, a fixed rate loan would allow him or her to "lock in" the low rates and not be concerned with fluctuations. On the other hand, if interest rates were historically high at the time of the loan, he or she would benefit from a floating rate loan, because as the prime rate fell to historically normal levels, the rate on the loan would decrease.

Adjustable Rate Mortgage (ARM) - Loan with an interest rate that can vary up or down at certain intervals (periods) and within certain limits (caps); loan is secured by house on which lender will foreclose if loan is not paid.

Administrative Deed - An administrative deed is a property deed that is in the name of someone who died, who did not have a will.

Affordable Housing - Public or private programs helping low-income people afford houses. These efforts can provide low-interest home loans, smaller down payments, and less demanding credit terms.

After Repair Value (ARV) - Used to determine a property's true value after repairs have been taken care of on the property in question. This is also known as Reconciled Market Value (RMV).

Alienation - Transferring property from one person to another.

Alienation/Acceleration/Due on Sale Clause - Stipulation that requires that on sale or transfer of certain property, a loan is immediately due and payable (see "Acceleration Clause").

All-Inclusive Deed of Trust - Also known as a wraparound contract, a mortgage document that includes amount actually financed as part of a property purchase as well as amounts of any prior deeds of trust (see also "Wraparound Mortgage").

Amortization - The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

Amortization Mortgage - A debt in which periodic repayments reduce the outstanding principal and pay off current interest charges.

Amortization Schedule -A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

Annual Percentage Rate (APR) - This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan.

Apportionment - Adjustment of income, expenses, or carrying charges on real estate, usually computed to the date of closing of title so seller pays all expenses to that date and buyer assumes all expenses after that.

Appraisal - Estimate of property's value as made by a trained, licensed professional, as a written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Appraisal by Comparison - Estimate of property value made by comparing sale prices of similar properties in the same area.

Appraisal - A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Appraised value - An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

Appraiser - (also, see assessor) Among other duties, the property appraiser is responsible for valuating improved and vacant land and helping to establish the land's market value.

Appreciation - The increase in the value of a property due to changes in market conditions, inflation, or other causes.

Appurtenance - Something outside of a property but belonging to the land and adding to its greater enjoyment, such as a right-of-way, barn, or dwelling.

Arm’s Length Transaction - A transaction between two related or affiliated parties that is conducted as if they were unrelated, so that there is no question of a conflict of interest. Or sometimes, a transaction between two otherwise unrelated or affiliated parties.

Articles of Incorporation - A document, filed with a U.S. state by a corporation's founders, describing the purpose, place of business, and other details of a corporation. With a legal liability company (LLC) these are referred to as Aritcles of Organization.

As Is - When a property is sold as is, it’s seller does not warrant or guarantee the property is free of defects; buyer accepts property in present condition without modification.

Assessed Value - The value placed on a piece of property for tax purposes by a tax assessor, used for imposing annual real estate taxes

Assessment - A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer.

Assessment Date - The day of the assessment year on which property is to be assessed.

Assessment - Is the imposition of a tax, charge or levy, usually according to established rates.

Assessor - (see also, appraiser) Among other duties, the property assessor is responsible for valuating improved and vacant land and helping to establish the land's market value.

Assessor Record - A document created by a property assessor that contains various data on the value of a property.

Assessor`s Parcel Number - Numeral assigned by county tax assessor to identify parcel of real property.

Asset - Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

Assignee - a person to whom a transfer of interest is made. For example, they are the assignee of a mortgage or contract.

Assignment - Method or manner by which a right or contract is transferred from one person (the assignor) to another (the assignee).

Assignment Deed of Trust - When ownership of a mortgage (Deed of Trust) is transferred or sold from one company (Lender) or individual to another.

Assignment of Rents - A procedure in which borrower gives lender the right to receive rents collected from a tenant in a house owned by borrower.

Assignment or OTC Liens - These are liens that were not bid on at a tax sale and still available for purchase. You can purchase these liens through the mail or by phone call. A portion of the liens left over from a sale were not purchased because there may have been something wrong with the property or no one bothered to research it.

Assignment Purchase - An assignment purchase occurs when an investor purchases a tax lien certificate held by a government or by another investor.

Assignment - When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

Assignor – Is someone who makes an assignment. For example, they are the assignor of a mortgage or contract.

Assumability - After a home is sold the seller may be able to transfer the mortgage to the person who has just purchased it. The buyer must have approved credit to be able to assume the mortgage; the loan will still retain the same terms and conditions.

Assumable mortgage- Is a mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must "qualify" in order to assume the loan.

Assumable Mortgage – Is a mortgage which, by its terms, allows a new owner to take over its obligations.

Assumes and Agrees to Pay - A clause in the deed or related document in which a buyer who takes over payments on a seller's old loan also agrees to pay the old loan; buyer normally receives title and makes payments. The clause is often found in the section of a document that transfers title from the seller to the buyer; seller may or may not be released from liability.

Assumption of Mortgage - Occurs when person takes title to property and assumes liability for payment of existing note or bond secured by mortgage against the property.

Assumption - The term applied when a buyer assumes the seller's mortgage.

Attorney in Fact - One who holds a power of attorney from another allowing him or her to execute legal documents such as deeds, mortgages, etc., on behalf of the grantor of the power.

Auction - Process of selling property at public sale to highest bidder or the other various auction methods.

Auditor - In Indiana, the auditor is the official who typically conducts tax lien sales.

Authorization to Release Information - This document authorizes the lender to speak with the third party on behalf of the seller.  It authorizes the lender to discuss the account information with a third party
Automatic Stay - A feature of bankruptcy law that goes into effect immediately upon filing a bankruptcy petition. It forces creditors to stop all collection actions against the debtor, such as foreclosures, repossessions, garnishments, and evictions, and gives the debtor time to sort things out and come up with a solution to his/her problems. The foreclosure on a Tax Lien certificate would also be held up by this process.

"B" sale - Subsequent tax lien sales in Indiana are known as "B" sales, These sales may be held by some counties to sell tax lien certificates that did not sell at the "A" sale.

Balloon mortgage - A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

Balloon Payment - The final installment on a loan that pays off debt; it is larger than previous installments paid.

Balloon payment - The final lump sum payment that is due at the termination of a balloon mortgage.

Bankruptcy - Action filed in federal bankruptcy court that allows creditor to reorganize or discharge credit obligations due to insolvency; property owner may restrain foreclosure action by filing bankruptcy.

Bankruptcy - By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "Chapter 7 No Asset" bankruptcy, which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

Bearer - Lender in whose hands the promissory note remains until it is paid in full.

Beneficiary - (1) One entitled to the benefit of a trust; (2) one who receives profit from an estate, the title of which is vested in a trustee; (3) lender on a security of a note and deed of trust.

Beneficiary`s Statement - Also known as a "benny statement", a written statement of conditions and remaining balance on loan secured by a deed of trust.

Bid down on the interest auction - At a tax lien auction with this method has the county start the bidding at a set interest rate. The bidders then may “bid down” their interest from the original set interest rate to something lower. This will proceed until no one is willing to go lower.  The lowest bid is the winning bid.

Bid down on the ownership - An investor can buy the lien for only a percentage of the overall property ownership. So, if the investor buys a lien at 50%, let’s say, that means that he/she only owns 50% of the property. This is usually a less desirable bidding method, since it makes it harder for an investor to enforce the lien or foreclose on it. Therefore, very few investors want less than 100% ownership, and most counties try to avoid this method all together.

Bidder's Package - The Bidder’s Package explains to the bidder the outline of the tax sale that is particular to that jurisdiction. The information provided, will explain how the auction will be run and how to make payments on winning bids.

Bill of Complaint - Initial paperwork filed in many states to begin foreclosure; part of the process of filing a lawsuit.

Bill of Sale - Document that passes title to personal property from seller to buyer.

Bill of sale - Is a written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

Biweekly mortgage - A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty-year mortgage.

Bond - Set sum of money or assets available if needed to pay to court or other named person upon a certain event.

Borough - An Alaskan government entity that is very similar to a county in other states. There are 18 boroughs in Alaska.

Broker Price Opinion - Real estate broker's estimate of property’s reasonable selling price; often less than professional appraisal but often more useful because it’s a realistic marketing price.

Broker’s Price Opinion (BPO) - The BPO, or Broker Price Opinion, is a tool used by lenders and mortgage companies to value properties in situations where they believe the expense and delay of an appraisal is not necessary. Real estate brokers are given an order to do a BPO by the lender, Mortgage Company or loss Mitigation Company. The broker does either a Drive by BPO or an Internal BPO in most cases.

Buy Down - Arrangement in which the seller pays some or all of the buyer's loan costs, usually measured by increments (points) of 1 percent of the loan; the seller pays enough points so that the lender can offer a loan at reduced interest rate (and lower monthly payment). The cost to seller is small, but the reduction in payments to the buyer can be substantial; The “Buy Down” is often structured to reduce interest rates (and payments) in early years of loan. In a 3-2-1 buy down, the seller pays enough points to reduce the buyer's interest rate 3 percent the first year, 2 percent the second year and 1 percent the third year; in the fourth year, the loan interest rate and the monthly payments would return to the normal market rate of interest as set initially.

Buydown - Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded “buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

By buying a tax lien, the real estate investor is essentially paying the property taxes for the property owner. The investor pays this money directly to the county office and has no interaction with the property owner. Starting from the date of the tax lien purchase, the investor can earn a fixed interest rate or flat penalty on the tax lien "certificate".

"C" Sale - Some Indiana counties hold "C" sales throughout the year in an attempt to sell tax lien certificates that have been offered in at least two previous tax lien sales without success. All properties offered at "C" sales have been "struck off" to the county.

Capital Improvement - Permanent structure change that extends useful life and value of a property, such as a new roof.

Caveat Emptor - Latin term meaning Let the Buyer Beware. This term is associated with tax sales.  There are no warranties expressed or implied.  The investor must do his due diligence.

Certificate of Purchase - (also, see tax lien certificate) A document delivered to the tax lien investor that acts as proof of purchase. The certificate generally contains the face value (winning bid amount) and the interest rate being earned during the redemption period.

Chain of Title - History of conveyances and encumbrances affecting a title from the time the original patent or right to the land was granted, or as far back as records are available.

Chain of Title - A term applied to the past series of transactions and documents affecting the title to a particular parcel of land.

Chapter 13 - Chapter in the federal Bankruptcy Code that gives wage earner the right to reduce debt payments through a bankruptcy court order according to the terms of a plan that will allow the debtor to pay much or even all of the original amounts owed.

Chapter 7 - Chapter in the federal Bankruptcy Code that calls for liquidation; a debtor's nonexempt assets are gathered together and given up or sold for benefit of creditors in order of their priority; debts are not discharged; secured creditors receive continued payments or the assets as collateral for the loan; unsecured creditors usually get little or nothing.

Chattel - Personal property such as household goods or fixtures.

Chattel Mortgage - Mortgage on personal property.\

Clear Title - Ownership rights to piece of real estate that are not diminished by liens, leases, or other encumbrances.

Clear Title - One which is not encumbered or burdened with defects.

Clerk of the Court - Among other duties, the clerk of the court often conducts tax lien and tax deed sales in some states, including Florida and North Carolina.

Closing – This is also known as "escrow" or "settlement." The process of executing legally binding documents, such as deeds and mortgages most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase.

Closing Date - Date on which buyer takes over the property.

Cloud on the Title - Outstanding claim or encumbrance that, if valid, affects or impairs owner's title.

Cloud on Title - Any encumbrance or claim that might invalidate a title to a property. This is also called title defect.

Code of Ethics - This is a written system of standards for ethical conduct.  For example, all Realtors® are required to follow a code of ethics that defines professional behavior.

Collateral - Assets or property, something of value, promised to a borrower to secure a loan or other type of credit and subject to repossession in the occurrence of default

Color of Title - Apparent invalid title.

Commissioner of State Lands - The Alabama and also the Indiana Commissioner of State Lands is responsible for scheduling tax sales in all of their perspective counties.

Commitment to Insure – Is a report issued by a title insurance company, or its agent, committing the title insurance company to issue the form of policy designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment.

Comparable sales- Recent sales of similar properties in nearby areas and used to help determine the market value of a property. This is also referred to as "comps."

Condemnation - Acquisition of private property for public use with what’s considered fair compensation to the owner.

Conditional Sales Contract - Contract for sale of property that calls for seller to deliver property, but title remains vested in the seller until conditions of contract are fulfilled.

Conforming Loans - Loans that meet Federal National Mortgage Association (Fannie Mae) standards.

Constable - Similar to a sheriff, a constable conducts redeemable tax deed sales in some Georgia counties.

Contingency- A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

Contract for Deed - Sales arrangement in which seller holds title until buyer completes payment for property and then receives title/deed; terms of sale and payments are set in written contract signed by buyer and seller.

Contract for Deed - An agreement to sell and purchase under which title is held as security by the seller until such time as the required payments to the seller have been completed.

Contract - An oral or written agreement to do or not to do a certain thing.

Conventional Lender - Group or individual that makes conventional loans.

Conventional Loan - Private loan not insured or guaranteed by any agency of the federal government.

Conventional Mortgage - Refers to home loans other than government loans (VA and FHA).

Convertible ARM- is an adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate mortgage within a specific time.

Convey - To transfer or grant title to a real property to another party.

Conveyance - Process of transferring title or some interest in real estate to a new owner; an instrument by which title is transferred; a deed; this is also called, the act of transferring title.

Cooperative (co-op) - A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

County-held Certificates - County-held certificates are tax lien certificates that have been "struck off" to the county. These certificates then usually become available to outside investors "over the counter".

County-held Tax Deeds - County-held tax deeds are tax deeds that have been "struck off" to the county. These tax deeds then usually become available to outside investors "over the counter".

Covenants - Agreements written into deeds and other instruments promising performance or nonperformance of certain acts or stipulating certain uses or restrictions on a

Credit- An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.

Credit History - Is a record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.

Credit Report - A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.

Creditor- Is a person to whom money is owed.

Cured Default - When borrower's failure to make payments or meet the terms of a loan is corrected to the lender's satisfaction.

Data Enhanced Lists - These are lists that tell the building descriptions (square footage, year built, number of bedrooms, bathrooms, etc.), the property value and land use codes. Costs may vary per parcel, and the lists must be ordered at least four business days in advance. Data enhanced lists may not be available in some jurisdictions.

Debt- An amount owed to another.

Deed - Legal document commonly used to transfer ownership of real estate from one owner to the next.

Deed of Reconveyance - Instrument that releases and discharges deed of trust.

Deed of Trust (Trust Deed) - Type of mortgage given to property owner to secure performance of an act (such as making payments on a loan). Whereas a mortgage involves two parties, borrower (mortgagor) and lender (mortgagee), a trust deed involves three parties: borrower (trustor), lender (beneficiary) and trustee (independent third party, usually a lawyer). If the lender wants to foreclosure because of default of the mortgage loan, the lender must present the case in a court of law and receive a judgment; the judgment is typically executed by the Sheriff, the executive officer of the court. If a lender wants to foreclose as a result of default on a trust deed loan, the trustee, who at the time of the loan was granted the right to hold title to the property for the duration of the loan, has the right to sell the property without the need of going to court in a trustee's sale. This streamlines the foreclosure process for the lender.

Deed - A written document by which the ownership of land is transferred from one person to another.

Deed-in-lieu - Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.

Default - Failure to fulfill duty or promise, or to discharge an obligation; omission or failure to perform an act. In property foreclosure, this usually refers to the failure to pay loan installment repayments when they become due.

Default - Is a 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.

Deficiency - Money that a borrower who has lost real estate in foreclosure still owes to the lender because the foreclosure sale failed to generate enough money to pay off the loan. Frequently, lenders acquire title to real estate at foreclosures and often only credit fair market value of the property against the balance due on the loan; any unpaid balance on the loan after all just credits are applied generally is the amount of deficiency. Many states limit or restrict deficiencies.

Deficiency Judgment - A court judgment that the defaulting borrower owes a deficiency.

Delinquency List - This is a list of delinquent properties, not to be confused with a tax sale list. These are not always good lists to use when searching for properties because oftentimes the owners will end up paying the delinquent taxes and the property will not end up going to a tax sale.

Delinquency - Is a failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

Delinquent - When a borrower misses multiple payments or fails to make the payments on time, late fees may also be added or foreclosure may occur as a last effort.

Delivery - The final and absolute transfer of a deed from seller to buyer in such a manner that the seller cannot recall it.  This is a necessary requisite to the transfer of title.

Deposit - Is a sum of money given in advance of a larger amount being expected in the future. It is often called in real estate as an "earnest money deposit."

Depreciation - It is a decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.

Depressed Market - This is a market which has more sellers than buyers. Low prices result from this excess of supply over demand. This is also called a buyer’s market which is opposite of a seller's market.

Discharge of Indebtedness or Debt - Lender informs borrower a loan does not have to be repaid.

Discount Points - In the mortgage industry, this term is usually used in only in reference to government loans, meaning FHA and VA loans. Discount points refer to any "points" paid in addition to the one percent loan origination fee. A "point" is one percent of the loan amount.

Distressed Property - A property that must be sold in order to pay unpaid portions on a mortgage of an individual, under financial hardship.

Documentary Transfer Tax - Applicable to transfers of real property, notice of payment entered on the face of the deed or on a separate paper filed with the deed.

Down Payment - The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

Due Diligence - An analysis or examination of a potential investment. Due diligence serves to confirm all material facts in regards to a potential sale.  Generally, due diligence [or D.D.] refers to the steps a sensible investor MUST take before entering into an agreement or a transaction in regards to a real estate transaction. Many steps are included in the D.D. process.

Due on Encumbrance - Clause in mortgage preventing a borrower from encumbering title to the property with liens, leases, or other encumbrances without the lender's consent.

Due on Sale - Mortgage clause demanding that borrower pay off the loan in full if the house is ever sold; lender can't prevent sale but can demand payment in full on the loan balance. Without a due-on-sale clause, loan is assumable without lender's consent; older FHA and DVA loans are assumable without lender’s consent.

Due on Sale Clause – A provision in a mortgage or deed of trust which requires loan to be paid in full if property is sold or transferred.

Due Process - The legal requirement that the state must respect and enforce pertaining to all of the legal rights that are owed to a person. Due process balances the power of the law of the land and protects individuals from it, with the exception of eminent domain.

Earnest Money - Down payment made by purchaser of real estate as evidence of good faith.

Earnest Money Contract - Agreement in which seller agrees to sell and the buyer agrees to buy.

Earnest Money - Advance payment of part of the purchase price to bind a contract for property.

Easement - Right that may be exercised by the public or individuals on, over, or through the property of others.

Egress - A property owner’s right to exit or leave his property by using a route that passes over land that is owned by another person; this is the opposite of ingress.

Encroachment - Building, part of building, or obstruction that intrudes on the property of another.

Encumber - To burden a parcel of land with a lien or charge, e.g., a mortgage.

Encumbrance - Encumbrance is the legal and technical terminology for anything that affects or limits the title of a property, such as mortgages, leases, easements, liens, or restrictions. Any right to or interest in property interfering with its use or transfer, or subjecting it to an obligation; with foreclosures, encumbrance likely includes mortgages and unpaid tax claims.

Encumbrance - A lien, liability or charge upon a parcel of land. This is anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

Equal Credit Opportunity Act (ECOA) - A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Equity - Excess of fair market value over the outstanding loan balance.

Equity Loan - Junior (subordinate) loan based on a percentage of the equity.

Equity - This is a homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

Escheat - A reversion of property to the state in those cases where an individual dies without heirs or devisees, and, in some states, without a will.

Escrow - Deposit held ready for some use, such as to pay taxes and insurance on a mortgaged property.

Escrow - A procedure whereby a disinterested third party handles legal documents and funds on behalf of a seller and buyer, and delivers them upon performance by the parties. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

Eviction - Legal procedure to lawfully and forcibly remove a tenant from real property.

Examination of Title - The investigation and interpretation of the record title to real property based on the title search or abstract.

Exception - In legal descriptions, that portion of land to be deleted or excluded. The term often is used in a different sense to mean an objection to title or encumbrance on title.

Excess Bids - Bidding more than the amount owed to the county by the property owner.

Exclusive Listing, also Exclusive Right to Sell - Agreement to give, for a specified period, only one broker the right to sell a property; if a sale during the term of the agreement is made by the owner or any other broker, the broker holding exclusive right is entitled to compensation.

Execution Sale - Sale of a property by a sheriff pursuant to a court order

Ex-officio Tax Collector - In Louisiana, the ex-officio tax collector is the sheriff who typically conducts redeemable tax deed sales in the parishes.

Extended Mortgage - One in which the due date of a mortgage is extended for a longer period, often at a higher interest rate than the original mortgage.

Fair Market Value (FMV) - The market value of a property is a stated opinion of a governmental or private appraiser (or assessor) regarding the current worth of the property; The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

Fannie Mae - Federal National Mortgage Association (also FNMA) is a private corporation, federally chartered to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.

Federal Discount Rate - The discounted interest rate offered by the Federal Reserve to eligible commercial banks. In Colorado, the current federal discount rate is added to 9% to establish the amount of interest earned on tax lien certificates.

Federal Housing Administration (FHA) Guarantee - An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.

Fee Simple Estate – This is the greatest interest in a parcel of land that it is possible to own. It is sometimes designated simply as "Fee."

FHA Mortgage - A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.

Financing Statement - A document filed with the Register of Deeds or Secretary of State securing the title to personal property.

First Mortgage - Loan with priority as a lien over all other mortgages; in cases of foreclosure, the first mortgage must be satisfied before other mortgages are paid off; typically a first mortgage is that which was executed earlier than all others unless a previous mortage is subordinated to  a later loan.

First Position Lien  / Senior Lien - The highest priority lien. In most states, a property tax lien becomes the first position lien meaning that it must be paid before any other liens or mortgages.

Fixed-Rate Mortgage - A mortgage in which the interest rate does not change during the entire term of the loan.

Fixtures - Any item of property so attached to real property that it becomes a part of the real property.

Flat Penalty - A flat penalty is essentially a "late fee" that is typically assessed on and added to the total redeemable amount of a tax lien certificate or a redeemable tax deed immediately after the sale. The flat penalty rate is established at the state level and will apply to all counties or other municipalities. Some states use a flat penalty on top of or instead of simple accumulating interest to penalize delinquent taxpayers and reward tax lien/tax deed holders.

Forbearance - Lender voluntarily accepts lower payments than originally agreed to in loan documents for a specific time period to allow borrower to recover financially; borrower eventually must repay missing or reduced payments and all other remaining payments on loan; this is viewed as a special agreement between the lender and the borrower to delay a foreclosure. The literal meaning of forbearance is “holding back.” Forbearance is usually for temporary financial problems.

Foreclosing or Barring the Right of Redemption - If the owner has failed to pay off the lien and the redemption period has expired, the lien holder may then foreclose on the property.

Foreclosure - Forced sale of real estate to repay debt; the legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage or property tax debt.

Forfeited Lands - Forfeited lands are properties that have been lost by their prospective owners and deeded to the county, municipality, or state.

Forfeiture of Title - Provision in a deed creating a condition which will cause title to be passed to another should certain circumstances occur.

Freddie Mac - Federal Home Loan Mortgage Corporation (also FHLMC) is a stockholder owned corporation chartered by Congress that purchases mortgage loans.

Freeze Order - Automatic stay; bankruptcy court order that prevents creditors from attempting to collect debt from individual who declared bankruptcy. Creditors may not undertake foreclosure, repossession, eviction or seizure, or even call or write the debtor demanding payment, and instead must join all other creditors and go through bankruptcy court to seek any money owed them.

Full Assumption - Arrangement in which buyer takes title to property and takes over payments on seller's old loan with the full permission of lender; new buyer also must prove to lender (qualify) adequate income and creditworthiness.

Full Disclosure - An obligation to disclose all the facts relevant to a business transaction or to a security, as required by the SEC or another government entity.

Ginnie Mae - Government National Mortgage Association (also GNMA) is a wholly-owned United States corporation that guarantees privately issued securities backed by pools of mortgages insured by FHA (Federal Housing Administration), FMHA (Farm e r s Home Administration) or VA (Veterans Administration).

GIS County Map - A GIS (Geographic Information System) viewer is an interactive mapping tool that is very useful for researching a property and/or location. Some GIS viewers are more robust than others and they may include aerial photography, zooming capabilities, search capabilities, housing sale data, and various other data about the area or city. Many GIS viewers are also integrated with property records that allow users to launch a GIS map from the property record, or to launch the corresponding property record by clicking a parcel in the GIS map.

Government Loan (mortgage) - A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.

Grace Period - Additional time allowed to perform an act or make payment before a default occurs.

Graduated Payment Mortgage - A loan in which monthly payments are relatively small in the beginning and gradually increase in dollar amount over the life of the mortgage.

Grant - Term used in deeds of conveyance of land to indicate a transfer.

Grant Deed - Conveyance document that implies grantor (seller) is granting an actual interest and has not previously granted such interest to anyone else.

Grantee – A person who acquires an interest in land by deed, grant, or other written instrument; party to whom the title to real property is conveyed;  the buyer.
Grantor – A person, who, by a written instrument, transfers to another an interest in land.Person who conveys real estate by deed; the seller.

Homeowner (HO) - A person who owns real property.

Homeowners' Association (HOA) – Is a nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements.

Homestead - Special legal protection that many states give to an individual’s principal residence; a homestead status often provides a discount in the property taxes by decreasing the assessed value of the property for a more favorable billing amount.
HUD 1 - A form settlement (closing) statement required by the U.S. Department of Housing and Urban Development (HUD) where federally related mortgages are being made on residential properties. It is a balance sheet showing the source of funds and the distribution of funds in connection with the purchase and/or mortgaging of residential property.

Improvements - Made to a parcel of land [lot] comprising of but not limited to immovable man-made objects, such as buildings, used in part to determine tax values.

Inchoate - The lien buyer's interest in the property is known as an inchoate interest. It is an interest in real estate which is not a present interest, but which may ripen into a vested estate, if not barred, extinguished or divested.  In Layman’s terms:  you have a right to the real estate as long as the following occurs:                                                  

Ingress - Refers to the entrance to land. Property owners have a right of ingress to their property even if others own all the surrounding property.

Initial Offer Price (IOP) - Also Known as the Purchase Price for the A to B transaction.  This is the amount that you are offering the seller for their property.  It is the number that you are going to put in the contract with the seller. 

Instrument - Written legal document; this is the term that the county offices most often use instead of "document."

Interim Financing - Temporary or short term loans. Often used with new construction. It is usually replaced with a permanent long-term mortgage.

Involuntary Lien - Lien imposed against property without consent of owner—such as taxes, special assessments.

Joint Tenancy - A form of ownership in which two or more people have equal shares in a piece of property, and rights pass to the surviving owner(s) in the event of death; ownership of property by two or more individuals, each with an undivided interest and right of survivorship.

Joint Venture Agreement (JV) - Is a contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise.

Judgment - Final decision of courts.

Judgment Docket – This is the record book of a County Clerk where a judgment is entered in order that it may become a lien upon the property of the debtor.

Judgment Lien - The charge upon the lands of a debtor resulting from the decree of a court properly entered into the judgment docket.

Judgment - A decree of a court. In practice this is the lien or charge upon the lands of a debtor resulting from the Court’s award of money to a creditor.

Judicial Deed - The Judicial Deed is the deed the court transfers to the lien buyer after an auction. This is a readily transferable deed since it is free from claims from outside owners and is free of risk from litigation of defect.

Judicial Foreclosure - A property foreclosure processed through the courts. In states that hold tax deed sales, a judicial foreclosure is typically initiated by a county official or department.

Judicial Foreclosure - This is a type of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of a court. Other states use non-judicial foreclosure.

Judicial Process - Procedural law, or adjective law consists of the rules by which a court hears and determines what happens in civil lawsuit, criminal or administrative proceedings, such as in the Delinquent Property Tax hearings. The rules are designed to ensure an impartial and consistent application of due process (in the U.S.) or Fundamental Justice (in other common law countries) to all cases that come before the court. Although different legal processes aim to resolve many kinds of legal disputes, the legal procedures share some common applications. All legal procedure, for example, is concerned with due process.

Jumbo Loan- A loan that exceeds Fannie Mae's and Freddie Mac's loan limits, currently at $227,150. This is also called a nonconforming loan. Freddie Mac and Fannie Mae loans are referred to as conforming loans.

Junior Lien Holder - Holder of a right to force sale of property that is subordinate to another lien holder's right to do the same. A junior lien holder who forces the sale of real estate must either pay off the senior lien or make arrangements to make payments on it to prevent it from being foreclosed. Foreclosure of first lien eliminates the right of the junior lien holder to foreclose, but foreclosure of a junior lien does not affect the right of the senior lien to foreclose.

Junior Mortgage - Mortgage second or subsequent in lien to a previous mortgage, or has been specifically subordinated.

Key Characteristics of Marketability - Those inherent characteristics of a property [usually raw land] that will enhance the property’s resale value, including, but no limited to, the following: paved roads, utilities, sewer lines, trees, mountains, water features [rivers or lakes], large dimensions, good views, close to amenities or famous attractions, etc.

Land Sale Contract - Document transferring ownership rights but not title that may be used to sell property.

Lands for Sale / Lands Available - Lands Available are the same as over-the-counter liens (OTC) that you can purchase from a taxing jurisdiction. They are usually properties that were not bid on in the auction and can be purchased through the mail. They are easier to purchase because you don’t have to go through the bidding process. They may have been passed up at the auction because they were less desirable properties.

Lease - A grant of the use of lands for a term of years in consideration of the payment of a monthly or annual rental.

Lease With Option To Buy - Arrangement in which property owner rents to a tenant who has the right to purchase the property on agreed terms.

Legal Description - A property's legal description is used to describe the location of a property and generally appears on all legal documents concerning the property, including the land deed. A legal description usually contains information such as its location (city, county, and tract number), its use (residential, commercial), its owners, and other various information that helps define the property.
Lender Liability - Holds lenders legally responsible to pay damages for legal misdeeds committed against borrowers in the course of making loans.

Lender's Policy - A form of title insurance policy which insures the validity, enforceability and priority of a lender's lien. This form does not provide protection for the owner.

Lessee – This is a person who takes lands upon a lease.

Lessor – This is a person who grants lands under a lease.

Liabilities- It is a person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.

Liability - Obligation to pay a debt.

Lien - This is a legal claim on a property or a form of security interest that can be used as collateral against a debt. If the property carries a lien, it can be foreclosed upon in order to reclaim the debt.

Lien - A hold, claim, or charge allowed a creditor upon the lands of a debtor. Some examples are mortgage liens, judgment liens, mechanics' liens.

Lien Subordination - Occurs when a lien is allowed to take a lesser priority than the lien of someone else, at the discretion of the Department of Revenue, a way to temporarily lift the lien giving the ability to refinance or sell.

Life Estate - A grant or reservation of the right of use, occupancy and ownership for the life of an individual.

Line of Credit - This is an agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower.

Liquid Asset- Is a cash asset or an asset that is easily converted into cash.

Lis Pendens - Recorded notice indicating a lawsuit is in progress that could affect title to a piece of land. The words or Latin for “litigation pending” and frequently signal a default in a mortgage for which the lender is seeking redress through foreclosure in court.

Lis Pendens - A notice recorded in the official records of a county to indicate that a suit is pending affecting the lands where the notice is recorded.

Listing Agent (LA)- A realtor that sells the property for the homeowner.

Listing Agreement - Accord in which seller hires a real estate broker to sell a property, usually for a commission.

Loan Balance - Amount a borrower owes on a loan.]

Loan Modification - Procedure in which a loan's terms, such as interest rate, monthly payment, or duration, are altered.

Loan Officer- Also referred to by a variety of other terms, such as lender, loan representative, loan "rep," account executive, and others. The loan officer serves several functions and has various responsibilities: they solicit loans, they are the representative of the lending institution, and they represent the borrower to the lending institution.

Loan Origination - How a lender refers to the process of obtaining new loans.

Loan Servicing - After you obtain a loan, the company you make the payments to is "servicing" your loan. They process payments, send statements, manage the escrow/impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made on the property, handle pay-offs and assumptions, and provide a variety of other services.

Loan-to-Value (LTV) - The percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower).

Loss Payable Clause - Provision added to a Fire and Casualty Policy which says any loss will be paid to two or more parties as their interest may appear. It is usually the owner and the mortgage lender.

Lot Book Report - Document from title company that identifies encumbrances recorded against a particular property; does not identify liens recorded in the name of the owner that may

Lottery Sales - Lottery Sales is a type of bidding where buyers are selected at random. The winner of the lottery may then decide if he / she would like to purchase the lien.

Mail-in Bid -   (also, see sealed bid or absentee bid) - A mail-in bid is used by an investor who is not able to physically attend the auction. A mail-in bid is generally mailed into the county office in a sealed envelope. The bid usually includes a bid registration form and payment, for either the deposit amount or the full amount of the bid. The money is returned to unsuccessful absentee bidders.

Market Cycle - Periodic up-down, high-low movements that happen in all markets; any price that goes up must come down too.

Marketable Title - Ownership of land that is without competing claims or other defects, such that is could be sold without complication.
Marketable Title - A good title about which there is no fair or reasonable doubt.

Maturity - This is the date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.

Maximum Buy Price (MBP) - This is the amount of money that you are willing to pay the short sale lender for the deal.

Maximum Offer Price (MOP) - This is the amount of money that you are willing to pay the short sale lender for the deal.

Mechanic`s Lien - Claim that secures the price of labor done on and materials furnished for uncompensated improvements.

Mechanic's Lien - A lien allowed by statute to contractors, laborers and material suppliers on buildings or other structures upon which work has been performed or materials supplied.

Memorandum/Notice of Contract - This is the document that is recorded in the public records and places a cloud on title.  It lets people know that you have a contract on the property.

Metes and Bounds - Land description that starts at a well-marked point of beginning and follows the boundaries of the land by metes (distances and compass direction) and bounds (landmarks, monuments) and returns to the point of beginning.

Metes and Bounds - A description of land by courses and distances.

Mill Rate - The amount of tax payable per dollar of the assessed value of a property. The mill rate is based on "mills"; as each mill is one-thousandth of a currency unit. One mill is equivalent to one-tenth of a cent or $0.001. Property tax in dollar terms is calculated by multiplying the assessed property value and the mill rate and dividing by 1,000. As a property may be subject to tax by a number of different authorities, mill rates are set by each taxing authority so as to meet the revenue projections in their budgets. For a given jurisdiction, mill rates may depend on the classification of property, whether it is residential, commercial, industrial, agricultural and so on.  As an example of using the mill rate to calculate the dollar amount of property tax payable, consider a property with an assessed value of $300,000 that is located in a jurisdiction with a mill rate of 15. The property tax levied would therefore be $4,500.
Minimum Bid - Starting bid price. Minimum amount of money the County will sell property for at an auction. Value is set at a discounted market value established by the Office of Real Property and the Commissioner of Finance, but it will not be less than the amount of back taxes.

Modification - Occasionally, a lender will agree to modify the terms of your mortgage without requiring you t refinance. If any changes are made, it is called a modification.

Monument - A fixed object established by surveyors and used to locate certain points in boundaries (used in metes and bounds land descriptions). Can be metal or stone markers, posts, trees, streams, or rivers.

Mortgage - Instrument in writing, duly executed and delivered, that creates a lien on real estate as security for payment of specified debt, usually in the form of a bond.

Mortgage Banker – Is a specialized lending institution that lends money solely with respect to real estate and secures its loans with mortgages on the real estate.

Mortgage Broker - A person or company that buys and sells mortgages for another on commission or who arranges for and negotiates mortgage contracts.

Mortgage Commitment - Formal indication made by lender that grants a mortgage loan on property for a specified amount and terms.

Mortgage Company - Group that makes home loans to borrowers; most then resell the loans on secondary market to loan buyers but continue to service the loans under contracts, collecting payments from borrowers and handling trouble (such as default and foreclosure) with the loan.

Mortgage Instrument - Legal paperwork to create mortgage.

Mortgage Insurance (MI) – An insurance policy that covers the lender against some of the losses incurred as a result of a default on a home loan. Often mistakenly referred to as PMI, which is actually the name of one of the larger mortgage insurers. Mortgage insurance is usually required in one form or another on all loans that have a loan-to-value higher than eighty percent. Mortgages above 80% LTV that call themselves "No MI" are usually a made at a higher interest rate. Instead of the borrower paying the mortgage insurance premiums directly, they pay a higher interest rate to the lender, which then pays the mortgage insurance themselves. Also, FHA loans and certain first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.

Mortgage Insurance Premium (MIP) -The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.

Mortgage Lien - Right of lender to force sale of mortgaged property if borrower fails to repay the loan as agreed.

Mortgage Revenue Bonds - Issued by communities as a means of providing lower cost mortgage funds to certain qualified borrowers.
Mortgage -An instrument used to encumber land as security for a debt.

Mortgage-Backed Security - A security evidencing either the ownership of an interest in a mortgage loan or pools of mortgage loans, or a separate obligation secured by a mortgage loan or pool of mortgage loans.

Mortgagee - Lender.

Mortgagee - The mortgage lender.

Mortgagee`s Title Policy - Title insurance policy that will pay off lenders loss if title to the mortgaged property fails.

Mortgagee's Policy - See Lender's Policy

Mortgagor - Borrower.

Mortgagor - The mortgage borrower.

Motion to Lift Stay - Formal request to bankruptcy court to dissolve an automatic stay that prevents a lender from foreclosing; once granted, lender may proceed to foreclose unless borrower can keep up payments.

Multiple List Service (MLS) - MLS stands for multiple listing services. Every home for sale listed by a real estate agent, unless it is specifically exempted from MLS, will be listed in MLS.

Negative Amortization – This is an actual increase in the principal amount of real estate loan because of the addition of matured but unpaid interest to the loan balance. It is usually the result of monthly payments which a re temporarily set at a lower than needed level.

Negative Equity - Position in which outstanding loans on property exceed its worth.

No Cash-Out Refinance - A refinance transaction which is not intended to put cash in the hand of the borrower. Instead, the new balance is calculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage. It is often referred to as a "rate and term refinance."

No-Cost Loan - Many lenders offer loans that you can obtain at "no cost." You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.

Non-judicial Foreclosure - Foreclosure on a mortgage/lien without filing lawsuit or obtaining court order; generally occurs because borrower has signed document such as deed of trust that gives trustee right to sell property to pay off debt.

Non-Option Addendum - Also known as the Short Sale Addendum to the Purchase and Sale Agreement.  This is the document that does full disclosure to the lender that you are an investor and that you are purchasing the property to resell.

Non-Recourse Loan - Does not allow the lender to pursue anything other than collateral. For example, if you default on your non-recourse home loan, the bank can only foreclose on the home. They generally cannot take further legal actions against you. The bank is out of luck even if the sale proceeds do not repay the loan.

No-Points Loan - Almost all lenders offer loans at "no points." You will find the interest rate on a "no points" loan is approximately a quarter percent higher than on a loan where you pay one point.

Notary - One authorized to take acknowledgments. See "Acknowledgment."

Notary Public - Person legally authorized to take sworn affidavits and certify certain classes of documents, such as deeds, contracts, and mortgages.

Note - Legal document specifying terms of a loan (including rate, duration, provisions dealing with failure to pay in timely manner).

Note- Is a legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

Note Rate - The interest rate stated on a mortgage note.

Notice Of Default - Letter sent to party as reminder that the loan has not been paid; may include a grace period and penalties for failing to cure the default.

Notice of Default (NOD) - Lenders file in the public records where the property is located a public notice called the Notice of Default. In some states, the Notice of Default is also attached to the home, generally on the front window, like a big scarlet letter. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home.

Notice Of Rescission - Document that cancels notice of default.

Notice to Quit - A written notice, given to a tenant by a landlord, stating that the landlord intends to regain possession of the leased premises, and instructing the tenant to vacate the rented property.

Offer in Compromise - An agreement between the taxpayer and the IRS to find a resolution to the taxpayer’s debt, the settlement of a delinquent tax account for less than the amount due.

Open Mortgage - A mortgage that has matured or is overdue and, therefore, may be foreclosed at any time.

Operating Capital - Available funds that can be used when financing everyday necessities and long term improvements

Ordinances - The rules, regulations, and codes enacted into law by city or county governing bodies (such as building standards, subdivision requirements, etc.).

Original Principal Balance - The total amount of principal owed on a mortgage before any payments are made.

Origination - Creation of a loan.

Origination Fee - On a government loan the loan origination fee is one percent of the loan amount, but additional points may be charged which are called “discount points" One point equals one percent of the loan amount. On a conventional loan, the loan origination fee refers to the total number of points a borrower pays.

"Overbid" Amount - (also, see "premium" amount) The dollar amount over the minimum bid price that a winning bidder pays for a tax deed or a tax lien certificate in a premium bidding auction.

"Over-The-Counter" - "Over-the-counter" is a term given to tax deeds or tax lien certificates that are available to interested investors on a first-come, first-served basis. Over-the-counter tax deeds or tax lien certificates can either be purchased online, by mail, or in person.

Owner Financing - A property purchase transaction in which the property seller provides all or part of the financing.

Owner-Occupied - Home used by borrower as his/her primary residence.

Owner's Policy - A policy of title insurance which

Ownership - The right to possess and use property to the exclusion of others.

Parcel Map - A basic drawing of a land parcel. Parcel maps are typically maintained at a variety of scales, and can be either very precise or very rough.

Parcel Number/ID - A legal identification number for a property.

Parish - A unit of government in Louisiana which operates similarly to counties in other US states.

Partial Payment - A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan. Normally, a lender will not accept a partial payment, but in times of hardship you can make this request of the loan servicing collection department.

Payment Change Date - The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.

Per Annum - A Latin phrase for "annually". "Per annum" is often used when speaking of interest rates (such as, 12 percent per annum).

Personal Property - Any property other than real estate. Includes airplanes, boats, manufactured homes not affixed to permanent foundations and business property such as supplies, office furnishings, machinery or equipment.

PITI Reserves - A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months.

PITI - This stands for principal, interest, taxes and insurance. If you have an "impounded" loan, then your monthly payment to the lender includes all of these and probably includes mortgage insurance as well. If you do not have an impounded account, then the lender still calculates this amount and uses it as part of determining your debt-to-income ratio.

Planned unit development (PUD) - A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the development or association. Contrast with condominium, where an individual actually owns the airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association.

Plat Book - Public record containing maps of land showing division into streets, blocks, and lots and indicating the measurements of individual parcels.

Plat or Plot - A map representing a piece of land subdivided into lots with streets shown there on.
PMI or Private Mortgage Insurance-  An insurance contract which insures that the named lenders will re cover a specific percentage of the loan amount from the insurer in the event the loan goes bad. Many lenders require this on higher percentage loans.

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

Points - Discount charges by lenders that raise loan yields.

Points - A one-time special fee or extra charge paid to a lender in order to secure a loan. It is usually expressed as a percentage of the face amount of a mortgage.

Policy - A written contract of title insurance.

Policy owner - The insured on a title insurance policy.

Positive Equity - When a property’s value exceeds amount due on mortgage.

Power of Attorney - Written documentation authorizing another person, or an attorney to act on the behalf of another; a legal document that can be limited or grant complete authority

Power of Attorney – This is a document authorizing another to act on one's behalf as his or her agent or their attorney.

Power of Sale – Is a clause in a will, mortgage, deed of trust or trust agreement authorizing the sale or transfer of land in accordance with the terms of the clause.

Power-Of-Sale Clause - Portion of deed of trust or mortgage in which borrower preauthorizes sale of property to pay off loan balance in case of default.

Pre-Approval - A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender. Contrast with pre-qualification.

Pre-Foreclosure - The status of a property that is in the early stages of being repossessed due to the property owner's inability to pay an outstanding mortgage obligation. Reaching pre-foreclosure status begins when the lender files a default notice on the property, which informs the property owner that the lender will proceed with pursuing legal action if the debt is not taken care of. At this point, the property owner has the opportunity to pay off the outstanding debt or sell the property before it is foreclosed.

Pre-Foreclosure - It is the status of a property which is in the early stages of being repossessed due to the property owner's inability to pay an outstanding mortgage obligation. Reaching pre-foreclosure status begins when the lender files a default notice on the property, which informs the property owner that the lender will proceed with pursuing legal action if the debt is not taken care of. At this point, the property owner has the opportunity to pay off the outstanding debt or sell the property before it is foreclosed.

"Premium" Amount - (also, see "overbid" amount) The dollar amount over the minimum bid price that a winning bidder pays for a tax deed or a tax lien certificate in a premium bidding auction.

Premium Bidding Auction - Premium bidding is typically what you will find at a traditional "public outcry" auction. Bidding starts at the established "minimum bid" amount. Bidding will continue until no other bidder is willing to go any higher than the current bid.

Prepayment Clause - Statement in mortgage granting mortgagor the right to pay off debt early.

Prepayment Penalty - A fee that may be charged to a borrower who pays off a loan before it is due.

Prepayment - Any amount paid to reduce the principal balance of a loan before the due date. This is the payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized.

Pre-Qualification - This usually refers to the loan officer's written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower.

Principal Balance - The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. See remaining balance.

Principal-  The amount borrowed or remaining unpaid. It is the part of the monthly payment that reduces the remaining balance of a mortgage.

Promissory Note - Is a written promise to repay a specified amount over a specified period of time.

Proof of Funds (POF) - Periodic up-down, high-low movements that happen in all markets; any price that goes up must come down too.

Property Condition - Property’s physical state.

Prorate - To allocate between seller and buyer their proportionate share of an obligation paid or due.  Here is an example, a proration of real property taxes or insurance premiums.

Prorations - Allocation of closing costs and credits to buyers and sellers.

Public Auction- A meeting in an announced public location to sell property to repay a mortgage that is in default.

Purchase Agreement - A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

Purchase Money Transaction - The acquisition of property through the payment of money or its equivalent.

Quiet Title - An action in a proper Court to remove record defects or possible claims of other parties named in the action.

Quiet-Title Action - An action to quiet title is a lawsuit filed to establish ownership of property and to prevent any subsequent claim to the property.

Quit Claim Deed - A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.

Quit-Claim Deed - A deed in which the grantor only passes whatever interest he may have in a property, if any, to the grantee. The grantors do not warrant title or possession. Grantor forever quits any claim, if any, he/she ever had in the property.

Random Bidding Auction - (also, see round-robin auction style auction) In rotational or random bidding, the first bidder is usually selected at random, and that bidder has the opportunity to purchase the first tax lien on the auction block. If "bidder #1" decides to purchase that tax lien, "bidder #2" has the opportunity to purchase the second tax lien on the auction block. If "bidder #1" passes on the opportunity to purchase the first tax lien on the auction block, that opportunity is passed on to "bidder #2". Bidding continues in this fashion until all available tax liens are sold.

Real Estate - Is a piece of land, including the air above it and the ground below it, and any buildings or structures on it. Real estate can include business and/or residential properties, and are generally sold either by a realtor or directly by the individual who owns the property (for sale by owner). In most situations in the United States, real estate is a legal designation, and is subject to legislation.

Real Estate Owned (REO) - Property acquired by lender through foreclosure and held in inventory by the bank or other mortgage holding institution.

Real Estate Owned (REO) - is a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction.

Real Property - Also called real estate or realty, means the combination of land and improvements for taxation purposes under a property tax system.

Real Property - Land, together with fixtures, improvements and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof.

Realtor® (RE) - A federally registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors® a n d subscribes to its strict Code of Ethics.

Realty - A brief term for real property.

Recasting - Restructuring loan with new interest rate and term; can be same loan from same lender.

Receivership - This is what happens when the FDIC takes over a bank to liquidate its assets; REO is taken over by the FDIC's liquidation division; existing contracts with the institution can be voided at the option of the FDIC.

Reconveyance - In those states which use deeds of trust as a mortgage on real property to secure payment of a loan or other debt, the transfer of title by the trustee (who has been holding title to the real property) back to the borrower (on the written request of the borrower) when the secured debt is fully paid.

Recorder - The public official who keeps records of transactions that affect real property in the area. It is sometimes known as a "Registrar of Deeds" or "County Clerk."

Recording - Act of writing or entering into the public record instruments or encumbrances affecting the title to real property.

Recording - The noting in the registrar's office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.

Recourse - Right to claim against prior owner of a property or a note.

Recourse loans - Get their name from the fact that lenders have power. They are allowed to go after you for amounts that you owe - even after they have taken collateral. If you default on a recourse loan, the lender can bring legal cases against you, garnish your wages, levy bank accounts, and try to collect the amount you owe. A legal action to collect money after foreclosure is generally called a deficiency judgment.

Redeem - Literally "to buy back".  It is the act of buying back lands after a mortgage foreclosure, tax foreclosure, or other execution sale.

Redeemable Deed Sales - Redeemable deed states auction off property deeds, but there is a period during which the delinquent property owner can come back and redeem the property. If a deed is redeemed during that period, it works much like a lien; the property owner must pay what is often a large penalty or interest rate.

Redemption Period - The redemption period for a tax lien certificate, or a redeemable tax deed, typically starts at the time of the first attempted, or successful, sale and ends at the time when the holder of the tax lien certificate, or tax deed, can legally begin the foreclosure process. The redemption period varies by state and sometimes by the type of property.

Redemption Period - A Period during which a former owner can reclaim foreclosed property or property posted for foreclosure.

Refinance - Process of replacing old loan with new one, usually at lower interest rate.

Registry of Deeds - A public office holding all the details on property in a county and the records including title documents all of which are public information.

Rehab - Is a major restoration to help a structure last. To rehabilitate is to improve the condition of a building.

REIT (also known as Real Estate Investment Trust) -A product of federal tax legislation formed as a business trust, under a special state

REIT statute or as a corporation for the purpose of investing in real estate or mortgages on real estate.

Release Clause - Statement in mortgage that gives property owner right to pay off part of debt, thus freeing part of property from mortgage.

Release Of Liability - Document relieving individual’s obligation to pay loan; may be obtained when buyer takes over payments on seller's old loan if buyer meets lender's standards for income and creditworthiness.

Remaining Balance - This is the amount of principal that has not yet been repaid. See principal balance.

Remaining Term - It is the original amortization term minus the number of payments that have been applied.

REMIC (also know as Real Estate Mortgage Investment Conduit) - A product of 1986 federal tax legislation in which a business entity such as a corporation, partnership, or trust in which substantially all of the assets consist of qualified mortgages and permitted investments, elects to be treated as a REMIC. Qualification avoids treatment as a corporation for tax purposes.

Request For Notice Of Default - Document that under statutory provisions allows certain interested parties to request and be entitled to notification of default.

Reverse or Reverse Annuity Mortgage - A mortgage for which the borrower pledges home equity in return for regular (monthly) payments, rather than a lump sum distribution of loan proceeds. Repayment is usually not required until the home is sold or the borrower's estate is settled, provided the borrower continues to live in the home and keeps current all taxes and insurance.  See also "Home Equity Conversion Mortgage."

Right Of Rescission - Authorization to back out of contract.

Right Of Survivorship - Opportunity for surviving joint owner to take over interests of deceased joint owner; a distinguishing feature of joint tenancy or tenancy by the entirety.

Right of Survivorship - In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.

Right-of-Way - The right or privilege to pass over a particular portion of a property that is owned by another person, a form of an easement.

Rotational Bidding Auction - See random bidding auction.

Round Robin Bidding - A fairly simple tax lien bidding process. The bidding goes around the room in a fixed order and each person is given the opportunity to buy a lien. The bidder pays the delinquent taxes (plus any penalties, interest and/ or costs) for the lien.

Run with the Land - Indicates that there are restrictions on a certain piece of property that affects the current owner, as well as all future owners; this transfers with ownership.

Scavenger Sale - A biennial tax sale held in Cook County, Illinois that offers tax liens with delinquencies of two or more years.

Scire Facias - Court order to borrower to attend hearing and show cause why foreclosure should not be authorized.

Sealed Bid - See mail-in bid.

Second Deed Of Trust - Subordinate position to another deed of trust securing same parcel.

Second Mortgage - Mortgage made by home buyer in addition to existing first mortgage.

Second Mortgage - A second loan on real estate that a l ready has a mortgage. It is subordinate to the first mortgage. It is usually of shorter term and often at a higher interest rate.

Secondary Market - The market in which investors buy loans from primary lenders, who deal directly with borrowers to originate loans.
Secondary Market - This is the buying and selling of existing mortgages, usually as part of a "pool" of mortgages.

Section, Block, and Lot number - A method used for land description that refers to a number of section, block, and lot which appears on maps and plats of recorded subdivided land.

Secured Loan - This is a loan that is backed by collateral.

Security - The property that will be pledged as collateral for a loan.

Seed Capital - The initial investment funds needed to acquire Real Estate. These funds do not have to be personal funds, but rather they are the monies from any source(s) to start the investment process.

Seller Carry-Back - An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.

Servicer - An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.

Servicing - The term that describes all of the administrative tasks that must be completed to successfully hold a tax lien portfolio through the redemption period and, if necessary, make verify your interest in the property if there is no redemption.

Servicing - The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

Settlement Statement - See HUD1 Settlement Statement

Sheriff Sales - Some states use the sheriff's department to conduct tax deed sales. These sales are typically referred to as "sheriff sales".

Sheriff`s Deed - Given to the purchaser at a court ordered sale to satisfy a judgment. A sheriff`s deed carries no warranties.

Short Sale - Workout procedure in which lender accepts less than full balance due on loan as part of deal in which borrower cooperates with lender to obtain quick sale.

Short Sale - is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.

Simple Assumption - Arrangement in which seller conveys property’s title to buyer and moves out while buyer moves in and makes payments on old loan; the lender does not qualify buyer's credit and income, so this may be a no-approval loan; the seller remains liable on old loan under such circumstances. (Only loans without strong due-on-sale clauses are assumable without approval, including DVA loans made before March 1, 1988; FHA loans made before December 15, 1989; and conventional loans made before 1973.)

Simple Interest - An investor typically earns simple interest while holding a tax lien certificate or a redeemable tax deed. Simple interest can be calculated by multiplying the tax lien amount by the number of periods by the interest rate.

Special Assessment Liens - If unpaid at the time of Tax Auction.  Assessment(s) made against a property to pay for a public improvement.
Statute of Limitations - A maximum amount of time limited by the state within which legal action may occur, depends on the type of law suit.

Straw Buyer - A person who purchases real property on behalf of another person. A straw buyer is used when the real buyer cannot complete the transaction for some reason.

Strict Foreclosure - Legal premise in some states that gives lender ownership to property, allows borrower to be evicted for nonpayment, and then gives lender full and complete title by waiting a set time period until borrower's right to redeem ends (the lender also gets any property value in excess of what’s owed on loan).

Struck-off Property - A "struck-off" property is a property that has been deeded to a municipality, a county, or state. "Struck-off" properties can then be offered at a public auction or "over-the-counter".

Subdivision - Is a housing development that is created by dividing a tract of land into individual lots for sale or lease.

Subject To  Clause - A line item in a sales contract [for example] in which buyer has a legal right to refuse the property or refuses to follow through with a contract or to accept legal liability to make payments due to the exemption which is spelt out as the “Subject To” clause.  If the sale fails, and the mortgage on property in question remains unpaid, lender's remedy for nonpayment on the existing mortgage is limited to foreclosure, and lender can’t sue defaulting buyer for missed payments on the loan balance since he/she were never on the title.

Subordinate Clause - Statement in a mortgage that gives priority to a mortgage taken out at later date.

Subordinate Financing - Any mortgage or other lien that has a priority that is lower than that of the first mortgage.

Subsequent Taxes - Subsequent taxes are the future taxes that are due after the tax sale (in which you buy the lien) is held.

Survey - Process by which parcel of land is measured and its area ascertained; also the blueprint showing measurements, boundaries, and area.

Survey - The process of measuring land to determine its size, location and physical description and the resulting drawing or map. A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

Sweat Equity - Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash.

Tax - A payment set at an involuntary amount to be paid to a state or federal, imposed for governmental support, there varying types of taxes including, federal, income and state.

Tax Assessed Value - The Tax Assessed value is basically an estimate of what a piece of property is worth. This valuation of the property helps decide what part of the local property tax levy will be billed to the property. Once this has been determined, the value is multiplied by the tax rates, sometimes known as the "mill rate," to determine how much tax the owner must pay on that piece of property. Many states use full market value (or a fraction of it) as a basis for their assessments.

Tax Deed Sale - A tax deed sale gives the buyer immediate ownership of the property. This ownership often requires the filing of a quiet title action to have marketable title but it is not subject to redemption by the delinquent tax payer.

Tax Defaulted Land Sale - Auction term used in California referring to their deed sale.

Tax Lien - A general lien imposed on all the property of a person liable for non-payment of taxes. This lien remains on the property until the taxes are paid, even if the property is conveyed to another person.

Tax Lien Certificate - (also, see certificate of purchase) A document delivered to the tax lien investor that acts as proof of purchase. The certificate generally contains the face value (winning bid amount) and the interest rate being earned during the redemption period.

Tax Lien Sale - A tax lien sale does not give the lien buyer ownership of the property. It gives the buyer a claim for money that is superior to almost all other liens, including mortgages and is secured by the real estate. If this claim for money is not satisfied the lien holder can apply for and receive the property, subject to the conditions set by the statutes for the jurisdiction. Approximate redemption rate for residential properties is somewhat above 90% in most jurisdictions.

Tax Sale - Sale held by taxing authorities, usually once a year, in order to sell their interest in a lien to third party investors. By doing this, the taxing jurisdiction is able to collect the outstanding delinquent taxes much more quickly than just waiting for payment from the delinquent property owner These sales are usually held in an auction format, open to the public, and, depending on the auction method used, the properties are sold to the highest bidder.

Tax Taking - The taxing jurisdiction "takes" the property and becomes the owner. The property is later sold, either through a negotiated sale or an auction.

Temporary Injunction - Court order freezing the status quo for extended time period, typically until full court trial can determine merits of case; can require posting bond, though many states' laws waive that in cases involving home foreclosure.

Tenancy At Will - A license to use or occupy lands and tenements at the will of the owner.

Tenancy by the Entirety  - Ownership by married persons where each owns the entire estate, with the survivor taking the whole upon the other's death.

Tenancy In Common - Ownership of real estate by two or more people, each of whom has an undivided interest without right of survivorship.

Tenancy in Common - An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.

Tenant - Any person occupying real property with the owner's permission.

Third-party origination - A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.

Title - Evidence of ownership of land.

Title - The evidence of right which a person has to the ownership and possession of land. This is commonly considered as a history of rights.

Title Company - Is a company that specializes in examining and insuring titles to real estate.

Title Defect - Unresolved claim against ownership of property that prevents presentation of marketable title; such claims may arise from failure of owner's spouse or former part owner to sign deed, as well as from current liens against property or interruption in title's records of property.

Title Defect - Any legal right held by others to claim property or to make demands upon the owner.

Title Insurance - A policy given by the seller to a buyer (owner’s policy), or a policy given to a lender by a borrower (lender’s policy), in which a title insurance company protects the buyer or lender against loss or damage due to some defect (from the past) arising in the title.

Title Insurance - Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.

Title Plant - The total facilities - records, equipment, fixtures, and personnel - required to function as a title insurance operation.
Technically, the organization of official records affecting real property into a system which allows quick and efficient recovery of title information.

Title Report - Document indicating current state of title, including easements, covenants, liens, and any other defects; does not describe the chain of title.

Title Search - Examination of public records to determine ownership and encumbrances affecting real property.

Title Search – It is an examination of public records, laws, and court decisions to disclose the current facts regarding ownership of real estate.

Topographic Map - A map showing changes in elevation through contour lines.

Transfer of Ownership - Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property "subject to" the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device.

Transfer Tax - There is a State or local tax payable when title passes from one owner to another.

Treasury Index - An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury's daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market.

Trust Deed - A type of mortgage that gives lender the power to foreclose and take title away from borrower.

Trustee - Person named in deed of trust or other mortgage to conduct any foreclosure proceedings and sell property to pay off mortgage loan balance.

Trustee - This is a person that holds or controls property for the benefit of another.

Trustee`s Deed - Type of deed issued to buyer at foreclosure by trustee.

Trustee`s Sale - Non-judicial action in which trustee may auction and sell property secured by a deed of trust subsequent to default in terms and conditions of loan.

Trustee`s Sale Guarantee - Title insurance policy for benefit of trustee handling foreclosure action.

Truth In Lending Act - Federal law that requires lenders to make certain disclosures (such as interest, annual percentage rate, total cost of loan, total of all payments, and use of disclosure forms at the loan application and closing) to borrowers concerning loan.

Truth-in-Lending - A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.

Two-Step Mortgage - An adjustable-rate mortgage (ARM) that has one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.

Undivided Interest - Ownership of real estate by joint tenants or tenants in common under the same title.

Upset Bidding - Upset bidding is a process used by some states in which other investors (including the former property owner) have ten days after the auction to upset the bid. An upset bid must exceed the original bid by a certain percentage or value. All monies are returned to the investor whose bid has been upset

VA Guarantee - An insurance contract in which the Veterans Administration (VA) insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event the loan goes bad.

Variable Rate Mortgage – It is a loan in which the interest rate fluctuates with the cost of funds or some other index.

Variance - Permission obtained from a zoning board to build or use a property in a way that is prohibited by current zoning laws; an exception from the zoning laws.

Vested - Having the right to use a portion of a fund such as an individual retirement fund. For example, individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a retirement fund. However, taxes may be due on any funds that are actually withdrawn.

Veterans Administration (VA) – This is an agency of the federal government that guarantees residential mortgages to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.

Warranty Deed - Conveyance of land in which grantor guarantees title to grantee.

Warranty - A promise by the grantor of real property that he or she is the owner and will be responsible to the buyer if title is other than as represented.

Will - A written document providing for the distribution of property owned by a person after his or her death.

Wraparound - Type of mortgage in which obligation to pay second or later lien includes obligation to pay earlier lien mortgage; later mortgage wraps around the earlier mortgage; default on earlier-lien mortgage is automatically a default on later-lien mortgage.

Writ of Execution - Court order authorizing holder to seize and sell debtor's property to pay off judgment.

Writ Of Possession - A writ of possession is a court order that tells the Sheriff to put you, and everything you own, along with everyone in your household out of the residence where you live.  The Writ gives you 24 hours to move out. The 24 hour time period starts from the time the Writ of Possession is posted on your door. If you have not completely moved out by the time the Sheriff will come back with the moving crew who will proceed to move you, your family and all your belongings from your home. This is called “Execution of the Writ”. The Sheriff’s moving crew will move you out even if someone is sick, pregnant, or in light of any another excuses you feel you should not leave your home.
Wrongful Foreclosure - Foreclosure that was legally improper and caused borrower to suffer damages.

Zoning - A power of government that allows districts to be established and regulations to be enacted, as to the use and intensity of use of the property in these districts. Such districts are restricted for industrial, commercial, multi-family dwellings, or single-family dwellings.



Glossary of Real Estate and Tax Sale Terminology

Note: Any of these terms would appear in a real estate dictionary, available at any bookstore for a very low price. You could also look any of them up on a Web search engine such as Google to get further information.

1915 Improvement Bond – A result of the Improvement Bond Act of 1915, a 1915 Improvement Bond is a form of public financing usually associated with off-site land improvements, such as streets, curbs, gutters and underground sewer and water infrastructure. A 1915 Bond is similar to a construction loan with a principal balance and an amortization period over which principle and interest is paid for by the property owner.

1915 Improvement Bond Act – An act of California legislation (Streets & Highways Section 8500) passed in 1915 to provide for the issuing of bonds by governmental agencies as a means of providing funds for the improvement of public facilities.

When a 1915 Improvement Bond special assessment district is activated, an assessment lien is placed against each affected property and a special assessment appears on the property tax bill until the debt is fully paid (this can be up to 40 years!). An important feature of these “bonded” assessment districts is that the lien has priority status. If the special assessment is not paid on time, the home can be foreclosed and sold through an accelerated foreclosure process that the issuer has a special right to do. This could occur as soon as 150 days after the bill becomes delinquent. If there is a 1915 bond assessment associated with a property, the cash equivalent of the remaining unpaid bond debt may also be added to the sales price for tax assessment purposes. 1915 Bond assessments are disclosed in the Preliminary Title Report as “liens” against a property. Assessors and state tax agencies recommend that Buyers carefully review the title documents for this information

401(k)/403(b) – An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations.
Glossary of Real Estate and Tax Sale Terminology

Note: Any of these terms would appear in a real estate dictionary, available at any bookstore for a very low price. You could also look any of them up on a Web search engine such as Google to get further information.

1915 Improvement Bond – A result of the Improvement Bond Act of 1915, a 1915 Improvement Bond is a form of public financing usually associated with off-site land improvements, such as streets, curbs, gutters and underground sewer and water infrastructure. A 1915 Bond is similar to a construction loan with a principal balance and an amortization period over which principle and interest is paid for by the property owner.

1915 Improvement Bond Act – An act of California legislation (Streets & Highways Section 8500) passed in 1915 to provide for the issuing of bonds by governmental agencies as a means of providing funds for the improvement of public facilities.

When a 1915 Improvement Bond special assessment district is activated, an assessment lien is placed against each affected property and a special assessment appears on the property tax bill until the debt is fully paid (this can be up to 40 years!). An important feature of these “bonded” assessment districts is that the lien has priority status. If the special assessment is not paid on time, the home can be foreclosed and sold through an accelerated foreclosure process that the issuer has a special right to do. This could occur as soon as 150 days after the bill becomes delinquent. If there is a 1915 bond assessment associated with a property, the cash equivalent of the remaining unpaid bond debt may also be added to the sales price for tax assessment purposes. 1915 Bond assessments are disclosed in the Preliminary Title Report as “liens” against a property. Assessors and state tax agencies recommend that Buyers carefully review the title documents for this information

401(k)/403(b) – An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organization.