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17 Cards in this Set

  • Front
  • Back
Abstract of Title
A summary of public records relating to the title of a particular parcel of land
The right of the mortgage (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgager (borrower), or by using the right vested in the Due-on-Sale Clause.
A formal declaration, usually before a notary, that the person has executed a document.
Adjustable Rate Mortgage (ARM)
Is a mortgage in which the interest rate is adjusted periodically based on a pre selected index. Also sometimes known as the renegotiable rate mortgage, the variable mortgage or the Canadian roll over mortgage.
Adjustment Interval
On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years, depending on the index.
Person appointed by the court to take possession of a person who died intestate, without leaving a will, pay their debts and distribute the balance of the property to those entitled to it by law.
Adverse Possession
Physical possession of real estate inconsistent with the rights of the true owner. In many states, a party in adverse possession, after satisfying the requirements of the statutes, can then acquire the title to the land. These requirements may include the payment of property taxes on the real estate as well as the passing of a number of years.
One who swears to or affirms the statement in an affidavit.
Affirmative Coverage
Provision in title policy where the title insurer insures against risks and losses not usually covered. For example: insurance against loss caused by violation of truth in lending laws. As you may imagine, title insurers very rarely offer this coverage.
All Inclusive Rate
A quote for title insurance that includes the cost of title search, title examination and the policy.
Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. Comes from the French word, "mort", literally to kill the loan owing.
Annual Percentage Rate (APR)
Is a interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit cost. The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan.
An estimate of the value of property, made by a qualified professional called an "appraiser". There are different types of qualified appraisers. The highest qualification is considered to be the MAI.
A local tax levied the County usually against a property for a specific purpose, such as a sewer or street lights. Also can mean the assessed value of the property. Similar, but not the same as an "appraisal" see above. Typically the property tax assessment amount is less than the fair market value.
A transfer of a right and/or interest in land. Often used for transferring the rights of a lender, buyer or tenant. The person who assigns rights is the Assignor, the person who acquires those rights is the Assignee
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply. Most mortgages today are unassumable as Lenders have found that assumed loans tend to have a far higher rate of default
Ballon Payment
A balloon mortgage is one where a lump sum, the balance of the loan principal, becomes payable at the end of the term. A mortgage can be interest only with the whole principal due at the end of the term or it may be calculated to amortize over a longer period, say 30 years, but with the outstanding principal balance payable at the end of, say, 10 years.