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Mortgage Dictionary
By Robert Irwin, Global Home Loans & Finance

Select the first letter of the term you wish to find:
[ A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z ]

Takeout Financing
A commitment to provide permanent financing upon completion of construction. The take out loan normally pays off the construction loan. 

Tax Lien
Lien for nonpayment of taxes 

Tax Sale
Public sale of a property at an auction by a government authority as a result of non-payment of taxes. 

Teaser Rate
A low initial interest rate on a mortgage. 

Tenancy at Sufferance
Tenancy established when a person who had been a lawful tenant wrongfully remains in possession of property after expiration of a lease. 

Tenancy at Will
A license to use or occupy land and buildings at the will of the owner. The tenant may decide to leave the property at any time or must leave at the landlords will. 

Tenancy by the Entirety
A form of ownership by husband and wife whereby each owns the entire property. In event of the death of one, the survivor owns the property without probate 

Tenancy for Years
Created by a lease for a fixed term, such as 6 months, 2 years, etc. 

Tenancy in Common
Ownership of a property by 2 or more persons, each of whom has an undivided interest, without the right of survivorship. Upon the death of one of the owners, the ownership share of the deceased is inherited by the beneficiary designated on the owner's will. 

Tenancy in Severalty
Ownership of property by one person. 

Time is of the Essence
Legal phrase in a contract requiring all references to specific dates and times noted in the contract be interpreted exactly. 

Time Share
A form of property ownership under which a property is held by a number of people, each with the right of possession for a specified time interval. Time sharing is used mostly for vacation properties. 

Evidence that the owner of the property is in lawful possession. Evidence of ownership. 

Title Insurance
An insurance policy which protects the insured against loss arising from defects in title. Title insurance policies are typically obtained for the buyer and the lender. 

Title Report
A document indicating the current state of title. The report includes information on the current ownership, outstanding deeds of trust or mortgages, liens, easements, covenants, restrictions, and any defects. 

Title Search
An examination of the public records to determine the ownership and encumbrances affecting the property. 

Town House
Residence which normally has 2 or more floors and is attached to other similar units. Town houses are commonly found in planned unit developments (PUDs) and condominiums. 

A parcel of land, generally held for subdividing. 

Transfer Tax
Tax paid to the city, county, state or other government entity upon sale of a property. 

Triple-Net Lease
One in which the tenant pays all operating expense of the property. The landlord receives the net rent. 

Trust Account
A separate bank account maintained by a broker or escrow company to handle all money collected for clients. A broker may not commingle these funds with his/her own funds. 

Trust Deed
See Deed of Trust. 

A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law. 

Truth in Lending
See Regulation Z. 

Two-Step Mortgage
A mortgage in which the borrower receives a fixed rate for a specified number of years (most often 5 or 7), and then receives a new interest rate based on the terms in the note. 

The decision whether to make a loan to a potential home buyer based on credit, income, employment history, assets, etc. 

Undivided Interest
An ownership right to use and possess a property that is shared among co-owners, with no one co-owner having exclusive rights to any portion of the property. 

Unincumbered Property
Real estate with free and clear title. 

Unimproved Property
Land that has received no development. 

Unrecorded Deed
A document that transfers title from the grantor to the grantee without recording (i.e. providing public notice). 

Charging a rate of interest greater than that permitted by law. 

Vacation Home
See second home. 

VA Loan
Home loan guaranteed by the U.S. Veterans Administration, enabling a veteran to buy a home with no money down. 

Variable Rate Mortgage
See Adjustable Rate Mortgage 

Verification of Deposit (VOD)
A document signed by the borrower's bank or other financial institution verifying the account balance and history. 

Verification of Employment
A document signed by the borrower's employer verifying his/her starting date, job title, salary and probability of continued employment. 

The voluntary renunciation, abandonment, or surrender of some claim, right, or privilege. 

Mortgage bankers and other financial institutions make loans that are then periodically sold on the secondary market. After the loan is made but before it is sold - the loan is said to be in the lenders warehouse. 

Warranty Deed
A deed conveying the title to a property with a warranty of a clear marketable title. 

Wraparound Mortgage
A loan arrangement whereby the existing loan is retained an a new loan is added to the property. 
Example : The seller sells his/her property for $200,000. The buyer puts $80,000 down. The seller has an existing loan balance of $100,000 for a remaining period of 25 years at an interest rate of 6%. The seller then makes a wraparound mortgage to the buyer, (where the seller acts as a lender) for $120,000 at 8%. The seller has to continue making payments on his old loan. They buyer has to pay the seller on the new loan. The buyer may at a later date refinance the property and close both loans. 

Zero Lot Line
A form of housing where individual units are on separate lots, but are attached to one another.
Example : PUD, townhouse. 

Areas may be zoned to specify use of a property i.e. residential, commercial, agricultural. These zoning ordinances are normally enforced by the city or the county. 

Select the first letter of the term you wish to find:
[ A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z ]

Robert Irwin