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- Balloon Mortgage:
A mortgage with periodic installments of principal and interest for a set number of
years (usually five or seven) and then must be paid off in full in a single "balloon"
payment.
- Balloon Payment:
A lump sum principal payment due at the end of a mortgage.
- Bankruptcy:
Court proceedings to relieve the debts of an individual or business unable to
pay its creditors. Bankruptcy may be declared under one of several chapters of the
federal bankruptcy code:
- Chapter 7: Bankruptcy filing which gives a trustee the power to distribute
a debtor's assets to creditors. This is also called a liquidation.
- Chapter 11: A reorganization by a business allowing the debtor to maintain
operating control of the business while restructuring debts and working out
a repayment schedule acceptable to the creditors. This is also referred to
as "debtor in possession".
- Chapter 13: A debt repayment plan where an individual debtor files a budget
with the court and agrees to make partial payment to creditors over a three
to five year period. Also called a "wage earner plan."
- Basis Point:
Equals one hundredth of one percent.
- Beneficiary:
As used in a trust deed, the entity that obtains the benefit of the security.
- Binder:
Sometimes known as an offer to purchase or an earnest money request. It is the
acknowledgment of a deposit and a written agreement to enter into a contract for the
sale of real estate.
- Blanket Mortgage:
A mortgage that covers more than one parcel of real estate owned by the mortgagor.
- Borrower:
Receives funds in the form of loan with the obligation of repaying the loan in
full with interest.
- Broker:
A person who arranges funding or negotiating contracts for a client but who does
not loan money himself.
- Buydown:
Funds paid to the lender by the borrower or third party to reduce the interest
rate of the loan for a specified period of time.
- Buy-Back Agreement:
An agreement specifying conditions under which the seller agrees to repurchase
the property.
- Buy-Down Mortgage:
A mortgage with a below-market interest rate made by a lender in return for an
interest rate subsidy in the form of additional discount points paid by the builder,
seller or buyer.
- Buyers Market:
A market in which there are more houses for sale than there are potential buyers.
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Equal Housing Lender. Casa Blanca Mortgage, Inc., DBA Shearsons Mortgage. Some products may not be available in all states. ©2005 Shearsons Mortgage. All rights reserved.
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