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Backup Contract
A contract to buy real estate that becomes
effective if a prior contract fails
to be completed.
Balloon Mortgage
A mortgage that has equal monthly payments that
will amortize over a stated term.
This mortgage requires that the entire
remaining balance (ballon payment) must be paid at a specified time.
Balloon Payment
The final lump sum payment that is due at the maturity date of a
balloon mortgage.
This payment is greater than the preceding installment payments and pays the
loan in full.
Bankruptcy
The financial inability to pay one's debts when due.
A person, firm, or corporation through a court proceeding, can restructure
debt payments or be relieved from the payment of
debts after the surrender of
assets to a court-appointed
trustee or can be allowed time to restructure the
financial affairs to fully pay the debts.
A bankruptcy does not discharge obligations when the loan
is secured by a deed of trust.
Before Tax Income
Income before taxes are deducted.
Beneficiary
The person or corporation that has the benefit of a trust.
Also, the security for the
lender of a note and
deed of trust.
Bid
The amount someone offers to pay.
Bill of Sale
A written document that transfers title
of personal property
from seller to buyer such as furniture or portable appliances.
Binder
A preliminary agreement, secured by the payment of an
earnest money deposit, which a
buyer offers to purchase real estate.
Biweekly Mortgage
A mortgage in which you make payments every
two weeks instead of one nominal monthly payment.
The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment
that would be required.
The result for the borrower is higher average payments over the same period of time with
substantial savings in interest.
Blanket
Covers two or more similar properties such as a blanket
mortgage covering more than one parcel of land.
Board of Realtors©
A local group of real estate licensees who are members of the state and National
Association of Realtors©.
Bona Fide
In good faith, without fraud.
Bond
An interest-bearing certificate of debt with a
maturity date.
An obligation of a government or corporation.
A real estate bond is a written obligation usually secured by a
mortgage or a
deed of trust.
Boot
Unlike property included to balance the value of like properties exchanged.
Bridge Loan
Not used much anymore.
Bridge loans are obtained by those who have not yet sold their previous property, but must close on
a purchase property.
It is a form of second trust that is collateralized by the borrower's present home
(which is usually for sale) in a manner that allows the proceeds to be used for
closing on a new house before the present home is sold.
Broker
A person who, for a commission or a fee, brings parties together and assists in negotiating
contracts between them.
Building Code
Local regulations established by governments that control minimum standards for design,
construction, and materials used in construction.
Building Permit
Permission granted by a local government to build a specfic structure or reconfigure an
existing building at a particular site.
Buy Down
The additional payment of "discount points" to a
lender in exchange for a reduced interest rate.
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