BALLOON (payment) mortgage
Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract. |
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BANKRUPTCY
A provision of Federal Law whereby a debtor surrenders his assets to the Bankruptcy Court and is relieved of the future obligation to repay his unsecured debts. A Trustee in Bankruptcy administers the assets, selling them to pay as much of the debt as possible. If your seller is in bankruptcy, the Trustee in Bankruptcy owns the property and is the party to sign the contract and make decisions. After bankruptcy, the debtor is discharged and his unsecured creditors may not pursue further collection efforts against him. Secured creditors, those holding deeds of trust or judgment liens, continue to be secured by the property but they may not take other action to collect from the debtor. |
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BENCHMARK
A permanent reference mark for surveyors. |
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BENEFICIARY
A person named to receive a benefit from a trust. A contingent beneficiary has conditions attached to his rights, usually someone else must die first. |
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BID
An offer. |
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BLANKET MORTGAGE
A mortgage covering at least two pieces of real estate as security for the same mortgage. This sort of loan is more common for commercial property or "special case" loans. |
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BOND
An amount of money, often posted with the Court, to guarantee against loss as a result of a possible claim. For example, if there is a LIEN against the property, the owner may post a bond and the lien is removed from the property and the parties argue over the money rather than the property. |
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BREACH OF CONTRACT
Failure to perform provisions of a contract. |
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BROKER
An individual in the business of assisting in arranging funding or negotiating contracts for a client buy who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services. |
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BUILDING RESTRICTION LINE
A required set-back a certain distance from the road within which no building may take place. This restriction may appear in the original plat of subdivision, restrictive covenants or by building codes and zoning ordinances. |
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BUY-DOWN
Obtaining a lower interest rate (buying down the rate) by paying additional points to the lender. The lower rate may apply for the full duration of the loan or for just the first few years. A buy-down may be used to qualify a borrower who would otherwise not qualify . This is because a buy-down results in lower payments which are easier to qualify for. |
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BY-LAWS
A set of regulations by which an organization conducts its business. |
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