Copy of `Understanding forclosure - Foreclosure Terminology`

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Understanding forclosure - Foreclosure Terminology
Category: Economy and Finance > Foreclosure
Date & country: 21/01/2008, UK
Words: 583


Tax shelter
A term referring to various tax advantages.

Teaser rate
Is a low, short-term interest rate that is offered on a mortgage to entice the borrower to purchase a home.

Temporary injunction
Is a court order freezing the status quo for extended time period, usually until a full court trial can determine the merits of the case; this can require posting a bond, though many states' laws waive this in cases involving home foreclosure.

Temporary restraining order
Is a court command that freezes status quo for short time until other legal relief is awarded or settlement between litigants can be reached.

Tenancy at will
Is a license to use or occupy lands and tenements at the will of the owner.

Tenancy by the entirety
Is an estate that exists only between husband and wife with equal right of possession and enjoyment during their joint lives and the right of survivorship.

Tenancy in common
Is a form of ownership where two or more owners hold an undivided, but not necessarily equal, interest in the property, with no right of survivorship.

Tenure
Is a law term which refers to the way in which a piece of property is held, like a fee simple or leasehold.

Third-party origination
Where in a third-party origination transaction, the lender has another institution put together all or part of a mortgage.

Time is of the essence
Is a phrase in a purchase contract which indicates a specific period of time in which an act must be performed.

Timeshare
Is ownership that involves an acquisition for a specific period of time or a percentage of interest in a property.

Title
Is the legal document that grants ownership on a piece of real estate.

Title company
Is a firm that ensures the property title is clear and provides title insurance.

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

Title examination
Is an examination of the public record to determine that the seller is the legal owner and that there are no claims or liens that would affect the transfer of title to the property.

Title insurance
Is a policy issued to the lenders and buyers to protect against loss due to disputed property ownership.

Title insurance binder
Is a title insurance companies written commitment to insure the title to a property, this is subject to specific conditions and exclusions.

Title report
Is a document indicating current state of a title, including easements, covenants, liens, and any other defects; this does not describe the chain of title.

Title risk
Is a possible problem to the transfer of title from one owner to another.

Title search
Is the process of reviewing all recorded transactions in the public record and to determine whether any title defects exist that might interfere with the clear transfer of ownership of the property.

Total expense ratio
Is the percentage of monthly debt obligations in relation to the gross monthly income.

Total lender fees
Are fees required by the lender to obtain a loan. Also known as finance charges.

Total loan amount
Is the base loan amount plus any closing costs that have been financed.

Total monthly housing costs
Is the sum of all the monthly housing expenses related to home ownership.

Total of all payments
Is the total cost of a loan, including the principal amount and interest payments.

Total paid at closing
Is the total of all the costs at the time of closing.

Tract home
Is a mass-produced house that is constructed by one builder in a project. Also known as a production home.

Trade equity
Is other real estate or assets that a buyer gives to a seller as part of the down payment.

Trading down
Means to Buy a home that is less expensive than the buyer`s current house.

Trading up
Buying a home that is more expensive than the buyer`s current house.

Transaction broker
Is a real estate professional not representing either the buyer or the seller, but is hired to help them reach an agreement.

Transfer of ownership
Is any legal means by where a piece of real estate changes hands.

Transfer tax
Is an assessment by a government authority when a piece of property changes hands.

Treasury index
Is an index used to determine interest rate changes for adjustable rate mortgages.

Trust account
Is a special account used by a broker or escrow agent safeguarding funds for a buyer or seller.

Trust deed
Is a type of mortgage giving a lender the power to foreclose and take the title away from the borrower.

Trustee
Is a legally empowered individual controlling a property for another person.

Trustee sale
Is an auction of real property conducted by a trustee. Also known as a Sheriff's Sale.

Trustee's sale guarantee
Is a title insurance policy for the benefit of a trustee handling foreclosure action.

Truth in lending act
Is a federal law allowing a consumer to cancel a home-improvement loan, second mortgage or other loan until midnight of the third business day after a contract is signed providing the home was pledged as security.

Turnover order
Is a court command to the debtor giving title of certain assets to the creditor.

Two-step mortgage
Is an adjustable mortgage that has two interest rates: one is for the first five or seven years of the loan, the another for the remainder of the loan term.

Unbundled real estate services
Are Real estate services purchased one transaction at a time.

Underwriting
Is the process where lenders evaluate the risks posed by a particular borrower and set appropriate conditions for their loan.

Underwriting fee
Is a fee charged by the lender to verify information on the loan application, authenticate the properties worth as collateral, and make a determination about whether to grant a loan to the applicant.

Undisclosed heir
Is a person who claims the right to property after the death of the owner who died without leaving a will.

Undisclosed spouse
Is a marital partner who can claim right to property but is not identified in the owners will.

Unilateral contract
Is a one-sided contract where one party promises to do something, the second party is not legally required to perform. However, if the second party does comply, the first party is obligated to keep the promise.

Unrecorded deed
Is a deed transferring ownership from one party to another without being officially recorded.

Unsecured debt
Is a debt that is not secured by collateral.

Unsecured loan
Is a loan not backed up by collateral.

Upgrades
Are additional options offered to buyers in a new-home project.

Upset bid
Is a recorded bid that is placed after a foreclosure sale has ended that is higher than the highest bid received at the actual sale.

Upset price
Is the opening bid that begins the auction bidding during a foreclosure sale.

Upzoning
Is the process in where a property is zoned from a lower to a higher use.

Urban sprawl
Is the unplanned expansion of a development.

Usury
Is illegally excessive interest charged on a loan.

Valuation
Is the estimated worth or price, or the act of valuation by appraisal.

Variable interest rate
Is a loan rate that moves up and down based on specific factors.

Variable rate
Is an interest rate that changes with fluctuations in the indexes.

Variable rate mortgage (VRM)
Is a loan that has an interest rate based on specific factors.

Vendees lien
Is a lien against a property that's under contract of sale to secure a deposit paid by purchaser.

Verification of deposit
Is part of the loan process where the lender asks the borrowers bank to sign a statement verifying the borrowers balances and history.

Verification of employment
Is the part of the loan process where the lender asks the borrowers employer for confirmation of the borrowers position and salary.

Veterans Administration (VA)
The Veterans Administration allows most veterans to purchase a house with a zero down payment.

Violation
Is an act, deed, or condition contrary to the permissible use of property.

VOD
The form that is sent to bank by lender verifying that borrower has a certain sum on deposit. (means Verification of Deposit)

VOE
The form that is sent to the employer by a lender verifying that a borrower is employed at certain salary. (means Verification of Employment)

Voidable contract
Is a contract that can be rejected by either one of the parties involved.

Voluntary lien
Is a lien a homeowner willingly gives to a lender.

Wage earner plan
Is the nickname for Chapter 13 bankruptcy.

Waiver
Is a voluntary relinquishing of certain rights or claims.

Warehouse fee
Is a closing-cost fee representing the lenders cost for temporarily holding a borrower`s loan before it gets sold on the secondary mortgage market.

Warranty
Is a legally binding guarantee on something for a specified time.

Warranty deed
Is the conveyance of land where the grantor guarantees title to grantee.

Without recourse
Are words used when endorsing a note or bill to denote that the future holder is not to look to the endorser in case of nonpayment.

Workout
Is the process where the borrower comes to a mutually acceptable financial arrangement with the lender to avoid impending foreclosure.

Wraparound
Is the type of mortgage where the obligation to pay a second or later lien includes an obligation to pay earlier lien mortgage; the later mortgage wraps around the earlier mortgage; default on the earlier-lien mortgage is automatically a default on later-lien mortgage.

Wraparound mortgage
Is a loan that is given to a buyer for the remaining balance on a seller`s first mortgage and an additional amount requested by the seller. Payments on both amounts are made to the lender who holds the wraparound loan.

Writ of execution
Is a court order that authorizes the holder to seize and sell the debtor's property to pay off judgment.

Writ of garnishment
Is a court order commanding someone who holds assets for another to give those assets up to the creditor.

Writ of possession
Is a court document that authorizes a constable or other law officer to break down a tenant's door, drag the tenant from premises, and throw the tenant's belongings out of house or apartment.

Wrongful foreclosure
Is foreclosure that was not legally proper and caused borrower to suffer damages.