REAL ESTATE TERMS YOU MAY WANT TO KNOW WHEN BUYING OR SELLING A HOME IN THE ORLANDO AREA
(Click A Letter Or Scroll Down To Find A Term Starting With That Letter)
Get To Know The “S’s” Of Real Estate
+/- Click A Term To Read Its Definition – Expands Answer In This Same Window – Click Again To Collapse
when a seller deeds property to a buyer for a payment, and the buyer simultaneously leases the property back to the seller.
an additional mortgage on property. In case of a default the first mortgage must be paid before the second mortgage. Second loans are more risky for the lender and usually carry a higher interest rate.
the buying and selling of mortgage loans. Investors purchase residential mortgages originated by lenders, which in turn provides the lenders with capital for additional lending.
a loan backed by collateral such as property.
the property that will be pledged as collateral for a loan.
an agreement where the owner of a property provides second mortgage financing. These are often combined with an assumed mortgage instead of a portion of the seller’s equity.
a mortgage that is 90 days or more past due.
a business that collects mortgage payments from borrowers and manages the borrower’s escrow accounts.
the collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
the distance between a property line and the area where building can take place. Setbacks are used to assure space between buildings and from roads for a many of purposes including drainage and utilities.
another name for closing.
a document required by the Real Estate Settlement Procedures Act (RESPA). It is an itemized statement of services and charges relating to the closing of a property transfer. The buyer has the right to examine the settlement statement 1 day before the closing. This is called the HUD 1 Settlement Statement.
a loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.
the sum of proceeds from the issuance of stock and retained earnings less amounts paid to repurchase common shares.
securities created by “stripping” or separating the principal and interest payments from the underlying pool of mortgages into two classes of securities, with each receiving a different proportion of the principal and interest payments.
“B” Loan or “B” paper with FICO scores from 620 – 659. “C” Loan or “C” Paper with FICO scores typically from 580 to 619. An industry term to used to describe loans with less stringent lending and underwriting terms and conditions. Due to the higher risk, sub-prime loans charge higher interest rates and fees.
to place in a rank of lesser importance or to make one claim secondary to another.
a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc. Surveys are conducted by licensed surveyors and are normally required by the lender in order to confirm that the property boundaries and features such as buildings, and easements are correctly described in the legal description of the property.
using labor to build or improve a property as part of the down payment.
Keep in mind that this is by no means a complete list of terms, but it does highlight most of the more common terms used in the industry and is a constant work in progress as time passes.
If you have any questions whatsoever regarding the sale or purchase of a property in the Central Florida area please feel free to call or write me direct. My business hours are Monday thru Friday 9am – 6pm.
Thank you for choosing MORE Realty Services LLC as an information source for your Central Florida real estate needs.
Tags: Central Florida homes for sale, For Sale By Owner, Kissimmee homes for sale, Lake Mary homes for sale, Orlando Area Real Estate, Orlando For Sale By Owner, Orlando homes for sale, Sanford homes for sale, The Complete Real Estate Glossary, Winter Park homes for sale