on a Letter to lookup a Real Estate Legal Term
Association of Realtors (NAR)
A national trade group of real estate licensees
Flood Insurance Program
Federal Emergency Management Agency, FEMA
A loan in which the outstanding principal balance goes up instead of down
because the monthly payments are not large enough to cover the entire principal and interest due. The
amount of the shortfall is added to the remaining balance to create "negative" amortization.
The reasonable right to compel a land owner to refrain from blocking ones
right to light or air which would otherwise normally be a lawful use of land.
An asset's capability of being assigned or transferred in the ordinary course of business.
Net Cash Flow
The income that remains for an investment property after the monthly operating
income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance
(PITI) for the mortgage, homeowners' association dues, leasehold payments, and subordinate financing payments.
The value of all of a person or businesses assets, including cash, after
all debt liabilities and obligations have been subtracted.
An early-American-style home that is simple and box-shaped with white clapboard
exterior siding and a steeply-pitched roof for shedding heavy snow.
No Cash-Out Refinance
A refinance transaction in which the new mortgage amount is limited to
the sum of the remaining balance of the existing first mortgage, closing costs including prepaid items,
points, the amount required to satisfy any mortgage liens that are more than one year old if the borrower
chooses to pay them off, and other funds for the borrower's use as long as the amount does not exceed
1 percent of the principal amount of the new mortgage.
An asset that cannot easily be converted into cash. Investments such as
real estate, bonds, cars or boats, are examples of non-liquid assets since they can take a long time to
Debt for which a borrower is not held personally liable. A lender agrees
that in the event of default, to take the pledged property as satisfaction for the debt and have no claim
on any other assets of the borrower.
A person who resides in another state.
A type of property other than housing such as office buildings, shopping
centers, industrial parks, churches, etc.
use of the land by way of zoning regulations.
Wear and Tear
physical depreciation of a property arising from its age and normal use.
A legal document that obligates a borrower to repay a mortgage loan at
a stated interest rate during a specified period to a named person, or order, or bearer, a definite sum
of money at a specified date or on demand and that usually provides for interest and which is secured
by a mortgage or trust deed. Also called a promissory note.
An annual interest rate stated on a mortgage note.
Notice of Default
A letter sent as a reminder to a borrower that he has breached one or more
of the loan covenants and that legal action may be taken.
Being of no legal validity or effect.
The definitions of Real Estate
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