Application:
The first
step in the official loan approval process.
APR:
Shows the cost of a loan expressed as a
yearly interest rate and includes interest
on loan, points, mortgage insurance, and
other fees.
Appraisal:
Provides an estimate of a property's fair
market value.
Assessor:
A government official responsible for
determining the value of a property for the
purpose of taxation.
Assignment of Deed of Trust or Mortgage:
Assumption by a purchaser of liability for
payment of an existing mortgage, or deed of
trust. May or may not be accompanied by a
release of liability of the original borrower.
Claim:
A demand to recover a loss protected by an
insurance policy.
Coverage:
A synonym for insurance indicating how much
protection the insurance provides. This may mean
either the dollar amount purchased or the type
of loss covered.
Declaration of Default:
A document instructing the trustee (usually appointed by a bank) to
prepare and record a Notice of Default (NOD),
and if necessary, to sell the property at
auction in order to satisfy the unpaid
obligation or lien.
Deductible:
The amount of money the policyholder agrees to
pay toward the total amount of an insured loss.
Deed of Trust:
A type of security instrument where the borrower
conveys the property’s title to a third party
(trustee) to be held “in trust” as security for
the note. OR The document that transfers
ownership of property.
Earnest
Money:
Money put down
by potential buyer to show serious intent of
buying home.
Equity:
An
owner's financial interest in a property,
calculated by subtracting the amount still
owed on the mortgage from the fair market
value of the property.
Exclusion:
An event or loss that an insurance policy does
not cover.
Foreclosure:
A legal procedure by which mortgaged property is
sold, upon default, in order to satisfy a debt.
Foreclosures generally are governed by state
law, and rules may vary between States.
Good
Faith Estimate:
An
estimate of all Closing costs to be paid at
closing which should be given to borrow
within 3 days after submission of a loan
application.
Homeowners Insurance:
Financial protection for your home and
belongings.
Insurer:
A company that provides insurance.
Junior Lien:
A
legal claim
upon real property recorded subsequent to
(after) another claim or legal obligation
(for example, a senior lien would have priority in most
cases).
Liability:
Legal obligations resulting from negligent acts
resulting in property damage or bodily injury.
Libel:
Any false or malicious written or printed
statement that publicly ridicules someone or
damages their reputation.
Lien:
A legal claim against property that must be
satisfied when the property is sold.
Loss:
The dollar amount of an insurance claim or the
basis upon which a claim is submitted.
Mortgage:
A conveyance of an interest in real property, given as security for
the payment of a debt. An agreement between two
parties: borrower and lender. OR A lien on the
property that secures the promise to repay
loan.
Negligence:
Carelessness or the habit of failing to use a
reasonable amount of care when such a failure
could result in an injury or damage to another.
Origination Fee:
The amount of money charged for providing a
loan, usually calculated in the form of
points.
Peril:
The cause of a loss that is insured by the
policy.
Point:
One
percent of the amount borrowed.
Policy limit:
The most money the insurance company agrees to
pay for a specific loss.
Premium:
The amount of money you pay to the insurance
company in return for insurance protection.
Recession of Notice of Default:
After an amount in default has been cured, or
paid-back, this document, when signed by the
lender and recorded by the trustee, removes the
burden of the previously recorded Notice of
Default.
Reinstatement Period:
The time period beginning when the Notice of Default is recorded,
and ending five business days before the
trustee’s auction sale. The default may be
cured, or paid-back, at any time during this
period by paying all delinquent amounts,
including the trustee’s fees and costs.
Restrictive Covenant:
In property law, an agreement
acknowledged in a deed or lease
that restricts the free use or
occupancy of property, such as
by forbidding commercial use or
certain types of structures. The
term is also used in business
law to refer to an agreement
whereby one party promises not
to engage in the same business
or a similar business in a
particular area for a period of
time.
Slander:
Anything spoken about an individual that is
false and malicious that ridicules them or
damages their reputation.
