A mortgage rate lock is an agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage for a specified time period at the prevailing market interest rate.
Real estate owned (REO) refers to property owned by a bank, government agency, or other lender. Homes typically become real estate owned after an unsuccessful foreclosure auction or short sale.
The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide disclosures to borrowers informing them of real estate transactions, settlement services, and relevant consumer protection laws. Its goal is to regulate settlement costs, prohibit specific practices such as kickbacks, and limits the use of escrow accounts.
A REALTOR® is a real estate agent or professional who is a member of the National Association of REALTORS®, or NAR®, which is America’s largest professional real estate organization. A REALTOR® is a real estate agent who is professionally licensed to negotiate and coordinate the buying and selling of real estate transactions.
Refinancing a mortgage means paying off an existing loan and replacing it with a new one. Refinancing can allow you to lower your monthly payment, save money on interest over the life of your loan, pay your mortgage off sooner and draw from your home’s equity if you need cash for any purpose.
A rent back agreement allows a seller to stay in the home until a specified date past closing. After settlement, the seller pays rent to the buyer, who now owns the home. The sellers are now renters and tenants of the home, with a security deposit being held in case of any damages.
If a third party buyer offers to buy or lease a property owner’s asset, the right of first refusal ensures the property holder is allowed a chance to buy or lease the asset under the same terms offered by the third party before the property owner accepts the third-party offer.
The right of egress is a person’s legal right to exit a property. The right of ingress is the right to enter a property.
The right of survivorship is employed most often when there is joint ownership or tenancy of a property. It ensures that the surviving owner automatically receives the deceased owner’s share of the property becoming the sole owner of the property.
A second mortgage is when a property owner borrows against the value of their home. They are also commonly referred to as HELOCs and draw on the market value of the home to provide the borrower with funds to use however they wish.
A secured loan is backed by the borrower’s assets, including cars, a second home, or other large items that can be used as payment to a lender if the borrower is unable to pay back the loan.
A seller carry-back is financing in which the seller acts as a bank or financial institution financing some or all of the transaction. The buyer will sign a promissory note agreeing to pay a specific amount (like a mortgage) to the seller, and the seller transfers the title to the new owner.