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Definition
| A complete historical and recorded summary, in date order, of all documents affecting the title, and ownership of a parcel of real estate |
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| A provision in the mortgage or note stating the entire principal balance shall become due and payable in the event of default or other predetermined event such as payment default or change in property use. |
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| A formal declaration, usually by a notary that a party did, in fact, voluntarily sign a document. |
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Definition
| Having been informed directly of something or having seen it occur, as distinguished from constructive notice. |
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Term
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Definition
| When payments are made on a debt in periodic installments of principal and interest, the loan is paid in full at the end of the term. This is referred to as being POSITIVE. NEGATIVE occurs when periodic payments doesnt cover the amount of interest due for that loan period in which case the principal or loan balance increases by the amount of the unpaid interest. |
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Term
| APR (Annual Percentage Rate) |
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Definition
Under the Federal Truth in Lending Act (REG Z), Is required to be disclosed within three business days of taking a loan application. It is the total yearly cost of a mortgage stated as a percentage of the loan amount. Better way of determining the yearly housing expense than the interest rate alone.
Interest Rate + Loan Fees + Mortgage Insurance + Points. |
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Term
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Definition
| A provision that prohibits a lender (investor) from dictating to a borrower where they must obtain hazard or homeowners insurance. The borrower may choose whomever they wish along as the insurance coverage meets the investor's requirements. |
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Definition
| A process used to estimate the value of a particular piece of property to determine for the lender if the property value will be sufficient to cover the loan if the borrower defaults. |
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Definition
| An increase in property value |
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Definition
| A decrease in property value |
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Definition
| stated in a contract that all disputes will be handled outside of court and litigations. Allows a independent arbiter to settle a dispute rather than putting it before court in a lawsuit. |
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