ABANDONMENT
herein a property owner has given up ownership rights without coercion, and does not want to retrieve those rights, or pass them to somebody else. A situation involving an unused property does not guarantee abandonment.
ACCELERATION CLAUSE
A provision in a mortgage that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstances. Usually when the borrower defaults on the loan.
CHATTEL
Any personal property which is not attached to or an integral part of a property. Chattel is not commonly taken into consideration when appraising the value of real property.
CLOSING COSTS
All appropriate costs generated by the sale of property which the parties must pay to complete the transaction. Costs may include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the deal.
DEED-IN-LIEU (OF FORECLOSURE)
A document given by a borrower to a lender, transferring title of the property. Often used to avoid credit-damaging foreclosure procedures.
FEDERAL HOUSING ADMINISTRATION (FHA)
A sub-agency of the U.S. Department of Housing and Urban Development created in the 1930's to facilitate the purchase of homes by low-income, first-time home buyers. It currently provides federally-subsidized mortgage insurance for private lenders.
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Also known as FNMA, or Fannie Mae, this federal agency oversees conventional residential mortgages, and will buy out loans that follow its rules. Some foreclosure investments require direct communication with this agency.
HUD-1 STATEMENT
A standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase.
SHORT SALE
Property sale priced at or below market value, and lower than the amount of a mortgage on the same property. Truth-in-Lending Act: A law requiring the lender to provide the borrower with a fully written explanation of the mortgage's terms.
Copyright © 2008 Real Estate Wish Team ~ RE/MAX PowerPro
Portions Copyright © 2008 a la mode, inc.
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