Real Estate Vocabulary - D

Here are some more important real estate key words to help you in your home search or sale!



Debt-To-Equity Ratio - The relationship of the loan and equity components which, for example if the debt is $80,000 and the equity is $20,000, there would be a debt ratio of 4:1 or the equivalent to an 80% loan to value ratio.

Declaration of Homestead- A recorded document that protects a homeowner from foreclosure by certain judgment creditors.

Delinquent Mortgage - A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.

Down Payment - The upfront cash commitment paid by the buyer. It makes up the difference between the sales price of a property and the loan amount obtainable.

Dual Agent - An agent who represents both parties in a transaction.

Due Diligence - The making of every reasonable effort to perform one's contractual obligations. Example - A prospective home-buyer signed a sales contract contingent on the sale of her present residence.

Due-On-Sale Clause - Provision in a mortgage or deed of trust calling for the total payoff of the loan balance within the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender at its option to declare immediately due and payable sums secured by the lender's security instrument upon a sale of transfer of all or any part of the real property securing the loan without the lender's prior written consent.

Dwelling - A place where people live such as apartments, hotels, mobile homes, nursing homes, and single-family houses.

For more information, visit my website!

Source: RealEstateWords

Real Estate Vocabulary - C

The Real Estate vocabulary continues!



Called Loan - A loan that is due and payable at the demand of the lender usually as a result of an acceleration or alienation clause becoming effective.

Cancellation Clause - A provision in a contract that gives a party the right to terminate his or her obligations upon the occurrence of specified conditions or events.

Capital Appreciation - The appreciation accruing to the benefit of the capital improvement to real estate.

Certificate of Occupancy - (COO) A document issued by a local government to a developer or in some cases others which permits a structure to be occupied by the general public and generally indicates that the building is in compliance with public health and building codes.

Certified General Appraiser -Generally any professional who has met the local or state requirements and passed the appropriate certification exam and is capable of appraising any type of property.

Class of Property - A subjective division of buildings as to their desirability to tenants and investors which is based on age location construction quality attractiveness of style level of maintenance etc.

Closing Costs - The miscellaneous expenses buyers and sellers normally incur at settlement in the transfer of ownership of real property over and above the cost of the property such as recording fees attorney fees title insurance premium etc. Closing costs which may consist of title insurance costs lender attorney fees appraisal fees and more can add thousands of dollars to your borrowing costs.

For more information, visit my website!


Source: RealEstateWords

Real Estate Vocabulary - B

Here are some more Real Estate terms that will help you in your home search!

Balloon Mortgage - An installment payment on a promissory note usually the final one for discharging the debt which is significantly larger than the other installment payments provided under the terms of the promissory note.

Bankruptcy - The inability of a debtor to pay one’s financial debts when due and where relief has been sought and has been granted through a special court action that makes it possible to resolve or eliminate the debtor’s debts.

Bid - The amount a party offers to pay on the home.

Bilateral Contract - A contract under which two parties exchange promises for the performance of certain acts. For example - Mr. A promises to buy Mr. B’s house and Mr. B promises to transfer its title to Mr. A.

Blanket Mortgage Or Trust Deed - A loan that covers two or more properties and often an entire subdivision where those properties are pledged or conveyed as security for the debt and which permits the borrower to obtain a partial re-conveyance when a parcel is sold.

Bleeding A Project - 1. In new construction overstating expenses and fees so as to divert a larger than normal amount of the project costs to the developer’s profit. 2. In managing existing real estate so as to obtain the highest possible current income from it.

Blighted Area -A district affected by detrimental influences of such an extent that real property values have seriously declined as a result of adverse land use and/or destructive economic forces. An area with rapidly depreciating buildings and no recognizable prospect.

Book Value - The current value for accounting purposes of an asset expressed as original cost plus capital additions and less accumulated depreciation.

Breach Of Contract - The violation of any terms or conditions in a contract without having a legal excuse such as the failure to make a loan payment when due.

Broker - A natural or legal person employed by another for a fee to carry on any legally-identified broker activity.

Budget - An itemized list of expected income and expenses prepared on a weekly monthly or annual basis.

Building Inspection - A physical review of property as construction progresses to insure that each major component – foundation plumbing electrical wiring roofing materials meets the building codes.

Build-To-Suit - A contract whereby an owner of land offers to construct a building on his or her land as specified by a potential tenant and then to lease land and building to that party.

Do you have questions about any of these terms? Give me a call!


Source: RealEstateWords

Real Estate Vocabulary - A

Jumping into Real Estate, as a buyer or a seller, can be overwhelming and confusing if you're not up to par on your terminology. Here are a few terms to help!

Advance Commitment - The institutional investor’s prior agreement to provide long-term financing upon the completion of a construction project.

Advance Fee - 1. A fee paid in advance of any services rendered such as in obtaining a loan. 2. Sometimes unlawfully charged in connection with the illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale with no intent.

Advancement - A gift from a parent to a child in anticipation of the share the child will eventually inherit from the parent’s estate which is intended to be deducted from the inheritance.

Adverse Possession - A method of acquiring title to real property through the continued possession of the property under certain conditions for the statutory period by a person who is other than the owner of record. 2. A means of acquiring title where an occupant has been in actual open notorious and continuous occupancy of a property under a claim of right for the required statutory period.

Aesthetic Value - The additional value a property enjoys based on subjective criteria such as look or appeal.

Affidavit - A statement or declaration reduced to writing and sworn to or affirmed before a public official who has authority to administer an oath or affirmation.

Affirmative Action Program - A detailed plan used to overcome the causes and affects of discriminatory policies in the hiring employment and/or training of minority members of society.

Stay tuned to the blog for more important Real Estate terms to come! And feel free to check out my website for more information on finding your dream home!


Source: RealEstateWords

What is a Short Sale?

A real estate short sale is when your mortgage banking establishment agrees to accept less than what is owed on the home.

Basically it is an alternative to selling your home when you owe more than what your home is worth. This is a less costly alternative to foreclosures, which banks prefer. This is why banks have become more lenient with accepting short sale offers.

For more information on short sales, visit my website.

Source: http://www.whatisashortsale.org/

What is a Strategic Default?

What is a strategic default?

Let’s first define strategic default in simple terms. Wikipedia says:

A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.

This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house’s price such that the debt owed is (considerably) greater than the value of the property – the property negative equity or “underwater” – and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called “walkaways.”

How do Americans feel about strategic default?

• The number of underwater homeowners who believe it is okay to default on your mortgage if you are under financial distress has almost doubled in the last twelve months (14% to 27%).
• 47% of people that are underwater and behind on their mortgage have considered strategic default.
• Those who know a strategic defaulter are more likely to have considered defaulting.
• 1 in 5 Americans knows a strategic defaulter.

Basically, as more people enter into negative equity, more will be tempted to ‘walk away’ from their mortgage obligations which will increase the homes going into foreclosure.

For more information on this and other real estate news, visit my website!

Source: KCM

Chase Bank Gives Incentive to Florida Homeowners

Homeowners across Florida, especially those behind on their mortgages, are looking for a way to improve their situation. Chase has been making these Florida homeowners a deal they can't refuse! Since last fall, Chase has been offering a sum of money ranging from $10,000 - $20,000 in exchange for the homeowner agreeing to a short sale on their home.

Simply stated, Chase is offering to forgive and forget any money that is owed to the bank as well as handing out cash bonuses to those homeowners willing to have a short sale on their home.

In doing so, banks forgo messy and time consuming foreclosures for both themselves and the homeowners. If you're a homeowner who can benefit from this process, contact your Chase lender or visit one of Chase's 13 mortgage help centers across the state.

While this deal is only available based on individual circumstances, taking the step to find out if you qualify could be your best move!

For more information on the housing market in South Florida, visit my website!


Source: The Real Deal