Setback

By on June 18th, 2013

Setback – The minimum required distance improvements must be from a property line.

  • Example: – When building a shed in your backyard be sure and check the setback requirements first. If you build too close to the property line and violate the setback you could be subject to fines or worse.

Servicer

By on June 17th, 2013

Servicer – An company that provides services to mortgage holders such as collecting payments, tracking balances and starting foreclosure proceedings.

  • Example: Once a loan is given to a buyer, its typically sold to an investor, therefore, servicers are hired to service the loans such as collecting payments, sending out notices, tracking balances and starting foreclosure proceedings.

Remaining Term

By on June 14th, 2013

Remaining Term – The amount of time left before a loan becomes due.

  • Example: If a borrower has a 30 year loan with 360 equal monthly payments, once they make the 120th payment, at the end of year 10, the remaining term is 20 years or 240 months.

Power of Attorney

By on June 13th, 2013

Power of Attorney – A document that grants authority for someone to act on someone else’s behalf. This can be complete power or just for a limited situation(s).

  • Example: When buyers have good working relationships with their agents, sometimes they give power of attorney so they can sign documents on their behalf.

No-Cost Loan

By on June 12th, 2013

No-Cost Loan – A loan with no costs or fees charged directly by the lender. In some situations there are still other fees such as recording fees, but none of them are directly charged by the lender.

  • Example: If you do not have extra cash, you should consider a no-cost loan where you would have to pay no costs or fees to the lender.

Modification

By on June 11th, 2013

Modification – When a lender agrees to change the terms of your loan.

  • Example: Lately, many people have been trying to get loan modifications to reduce their loan payments.

Joint Tenancy

By on June 10th, 2013

Joint Tenancy – A way to take title to a property where both owners own it together, there is no division of ownership. However, when one owner dies, the surviving owner becomes the full owner. It cannot be willed.

  • Example: Married couples typically hold property using joint tenancy so that if one spouse dies it automatically goes to the surviving spouse.

Homeowner's Warranty

By on June 7th, 2013

Homeowner’s Warranty – A warranty that covers the appliances and systems of a home, this is purchased by the homeowner and can be for a variety of different lengths and cover a variety of different items.

  • Example: When you purchase a home, it may be a good idea to also purchase a homeowners warranty in case the appliances or systems break down.

Fair Market Value

By on June 6th, 2013

Fair Market Value – The price that a property should sell it given normal market conditions, with ready, willing and able buyer and seller, when neither party is compelled to act.

  • Example: When you get a loan to purchase real estate the lender will get an appraisal to determine the fair market value of the property and they will use that for the basis of the amount of the loan.

Eminent Domain

By on June 5th, 2013

Eminent Domain – The power of government to force the sale of private land for the greater good public use. They must pay fair market value for the property.

  • Example: As cities expand, governments expand interstates and freeways. In order to acquire the necessary land to do so, they can call upon their power of eminent domain to induce a fair market value sale.
 
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