A purchase-money mortgage, also known as owner or seller financing, is issued to the buyer by the seller of a home during the purchase transaction. It is done to bypass a typical mortgage broker or lending channel and allows the buyer to assume the seller’s mortgage.
A quitclaim deed is a document transferring ownership of property from one party to another. It transfers the title of the property, but only transfers what the seller actually owns. If two people own a home jointly, one person could only transfer their half of the property via quitclaim.
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.