Archive for the ‘foreclosures’ Category

Real Estate 101 Glossary V-Z

December 31, 2009

The last blog  of the year with the last letters of this glossary.  Thank you for joining me this year and have a Happy, healthy and prosperous New Year!

VACANCY RATE   The current percentage of vacant properties in a given area, regardless of why they are vacant.

VA MORTGAGE  A mortgage that is guaranteed by the Department of Veterans Affairs (VA).

VARIANCE   An exception to municipal zoning regulations granted for a specific time period to allow for non-conforming use of the land.

VENT PIPE   A pipe allowing gas to escape.

VESTED   Having the right to use a portion of a fund such as an IRA. Typically vesting occurs over time. If you are 100% vested, you have a right to 100% of the fund.

VETERANS AFFAIRS, DEPARTMENT OF (VA)   The successor to the Veteran’s Administration, this government agency is responsible for ensuring the rights and welfare of our nation’s veterans and their dependents. Among other duties, the VA insures home loans made to veterans.

VOLTAGE   An expression of electric force, or pressure. One volt being the force needed to move one amp against one ohm resistance.

WALK-THROUGH INSPECTION   A process whereby an appraiser examines a property in preparation for estimating its value. Also, the process of inspecting a property for any damage prior to that property being bought or sold.

WARRANTY   An affidavit given to stipulate the condition of a property. The person giving the warranty assumes liability if the condition turns out to be untrue.

WATT   An expression of amount of electrical power. Volt times amps equals watts.

WEAR AND TEAR   A term used to indicate the normal damage inflicted on a property through every-day use.

WEATHER STRIPPING   Material used around windows and doors to prevent drafts.

WEEP HOLE  Drainage hole that allows water to escape.

ZERO LOT LINE   A municipal zoning category wherein a building or other fixture may abut the property line.

ZONE   A specific area within a municipality or other jurisdiction which conforms to certain guidelines regarding the use of property in the zone. Typical zones include single-family, multi-family, industrial, commercial and mixed-use.

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Real Estate 101 glossary P-R

November 28, 2009

Here we are after Thanksgiving.  Forget the turkey, I was stuffed.

PARTIAL INTEREST   A shared ownership in a piece of property. May be divided among two or more parties.

PARTIAL PAYMENT   A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.

PERIODIC PAYMENT CAP   The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.

PERIODIC RATE CAP   The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

PERSONAL PROPERTY Owned items which are not permanently affixed to the land.

PERSONAL RESIDENCE   The primary domicile of a person or family.

PLANNED UNIT DEVELOPMENT (PUD)   A coordinated, real estate development where common areas are shared and maintained by an owner’s association or other entity.

PLAT   A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.

POINT   A percentage of a mortgage amount (one point = 1 percent).

PRE-APPROVAL   The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.

PREFABRICATED  Any building or portion thereof which is manufactured and assembled off site, then erected on a property.

PREPAYMENT  Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.

PREPAYMENT PENALTY   A fee that may be charged to a borrower who pays off a loan before it is due.

PRE-QUALIFICATION   Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.

PRIME RATE   The interest rate that banks and other lending institutions charge other banks or preferred customers.

PRINCIPAL   The amount owed on a mortgage which does not include interest or other fees.

PRINCIPAL BALANCE   The outstanding balance of principal on a mortgage. Does not included interest due.

PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI)   The most common constituents of a monthly mortgage payment.

PRIVATE MORTGAGE INSURANCE (PMI)  A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.

PROPERTY  Any item which is owned or possessed.

PURCHASE AGREEMENT   A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

QUADRAPLEX  Any building designed to accommodate four families.

QUALIFYING RATIOS   Two ratios used in determining credit worthiness for a mortgage loan. One is the ratio of a borrower’s monthly housing costs to monthly income. The other is a ratio of all monthly debt to monthly income.

QUITCLAIM DEED   A legal document which transfers any ownership an individual has in a piece of property. Often used when the amount of ownership is not known or is unclear.

RAFTER  A structural element of the roof, sloping from the peak to the outer walls.

RANCH HOUSE   An architectural style typified by a single-story, low-roof construction. Popular in the western U.S.

RATE LOCK   A guarantee from a lender of a specific interest rate for a period of time.

RAW LAND   Any land which has not been developed.

REAL ESTATE   A piece of land and any improvements or fixtures located on that land.

REAL ESTATE AGENT   A licensed professional who facilitates the buying and selling of real estate.

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)  A federal law requiring lenders to give full disclosure of closing costs to borrowers.

REAL PROPERTY   Land, improvements and appurtenances, and the interest and benefits thereof.

REALTOR®  A real estate agent or broker who is a member of the NATIONAL ASSOCIATION of REALTORS®.

RECEPTACLE   An electrical outlet to plug into.

RECORDER   A local government employee whose role it is to keep records of all real estate transactions within the jurisdiction.

RECORDING   The filing of a real estate transaction with the appropriate government agent (normally the RECORDER). A real estate transaction is considered final when it is recorded.

REFINANCE TRANSACTION   A new loan to pay off an existing loan. Typically to gain a lower interest rate or convert equity into cash.

REGISTER   Where air from a furnace or air conditioning system enters the room.

RELOCATION SERVICE   Any company or agency that assists corporate employees in relocating from one place to another. Services may include hiring and coordinating real estate agents, moving companies, utilizes and the like.

REMAINING BALANCE   Back to top
The amount of principal, interest and other costs that has not yet been repaid.

REMAINING TERM   The amount of time remaining on the original amortization schedule.

REMODEL   An activity designed to improve the value or desirability of a property through rebuilding, refurbishing, redecorating or adding on to it.

REPAYMENT PLAN   A plan to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosure.

REPLACEMENT RESERVE FUND  An account, or fund, setup for the replacement of short life items, such as carpeting, in the common areas of a cooperative property.

RESIDENTIAL PROPERTY  A piece of property whose highest and best use is the maintenance of a residence.

REVOLVING DEBT   A type of credit that allows the borrower/customer to make charges against a predetermined line of credit. The customer then pays monthly installments on the amount borrowed, plus interest.

RIDGE BOARD   The structural member of a roof where the rafters join at the top.

RIGHT OF FIRST REFUSAL   An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others.

ROOF PITCH   The degree of slope in a roof.

RURAL  An area outside of an established urban area or metropolitan district.

How to buy a bank owned property

November 22, 2009

This was so popular, I am posting again

http://www.youtube.com/watch?v=SM7oWKgCVo4&feature=player_embedded

Real Estate 101 Glossary “G & H”

November 2, 2009

Lola and me!cid_image6I am combining these two today.  Enjoy

GABLE ROOF   A steeply angled, triangular roof.

GALVANIZED PIPE  Iron pipe with a galvanized (zinc) coating.

GAMBREL ROOF  A ”barn-like” roof, where the upper portion of the roof is less-steeply angled than the lower part.

GENERAL LIEN  A broad-based claim against several properties owned by a defaulting party.

GEORGIAN   A classic, English-style hose characterized by simple rectangular shape and multiple stories.

GFI   Ground Fault Interrupter. A type of circuit breaker required in areas where water is present.

GINNIE MAE   A wholly owned corporation created in 1968 within the U.S. Department of Housing and Urban Development to serve low-to moderate-income homebuyers.

GIRDER   A main supporting beam.

GOVERNMENT MORTGAGE  
Any mortgage insured by a government agency, such as the FHA or VA.

GRADE   The slope of land around a building. Also ground level.

GRANTEE   Any person who is given ownership of a piece of property.

GRANTOR   Any person who gives away ownership of a piece of property.

GROSS AREA   
The sum total of all floor space, including areas such as stairways and closet space. Often measured based on external wall lengths.

GROUTING   Material used around ceramic tile.

GUTTER The trough around the edge of the roof that catches and diverts rain.

HALF-SECTION   320 acres.

HAZARD INSURANCE   
Insurance covering damage to a property caused by hazards such as fire, wind and accident.

HEADER   
The framing elements above an opening such as a window or door.

HEARTH   
The floor of a fireplace or the area immediately in front of it.

HEIGHT ZONING   A municipal restriction on the maximum height of any building or other structure.

HIDDEN AMENITIES   
Assets of a property which contribute to its value, but are not readily apparent. Examples might include upgraded or premium building materials.

HIGHEST AND BEST USE   The most profitable and likely use of a property. Selected from reasonably probable and legal alternative uses, which are found to be physically possible, appropriately supported and financially feasible to result in the highest possible land value.

HOME EQUITY CONVERSION MORTGAGE (HECM)   
Also known as a reverse annuity mortgage. It allows home owners (usually older) to convert equity in the home into cash. Normally paid by the lender in monthly payments. HECM’s typically do not have to be repaid until the borrower is no longer occupying the home.

HOME EQUITY LINE OF CREDIT   
A type of mortgage loan that allows the borrower to draw cash against the equity in his home.

HOME INSPECTION   
A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value.

HOME INSPECTOR   A person who performs professional home inspections. Usually, with an extensive knowledge of house construction methods, common house problems, how to identify those problems and how to correct them.

HOMEOWNER’S ASSOCIATION   
An organization of home owners in a particular neighborhood or development formed to facilitate the maintenance of common areas and to enforce any building restrictions or covenants.

HOMEOWNER’S INSURANCE   
A policy which covers a home owner for any loss of property due to accident, intrusion or hazard.

HOMEOWNER’S WARRANTY   
An insurance policy covering the repair of systems and appliances within the home for the coverage period.

HUD MEDIAN INCOME   
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).

HUD-1 STATEMENT   A standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase.

How to buy a bank owned Foreclosure (REO)

October 29, 2009

http://www.youtube.com/watch?v=SM7oWKgCVo4&feature=player_embedded