The URLA -Uniform Residential Loan Application (also known as the Freddie Mac Form 65/Fannie Mae Form 1003) is a standardized document used by borrowers to apply for a mortgage. The URLA is jointly published by the GSEs and has been in use for more than 40 years in all U.S. states and territories.

Mortgage closing costs are fees charged for services that are performed to process and close your loan. When applying for your loan, lenders are required by HUD to disclose to you what the estimated mortgage closing costs will be.  Examples of typical mortgage closing costs include an origination fee, which compensates the lender for making the loan, title insurance, which protects the owner’s and lender’s ownership interest in the property from claims by others, an appraisal fee, which pays for a valuation of the property by a licensed appraiser.  Other mortgage closing costs may include a credit report, deed or document recording fee, attorney’s or closing agent’s fees, mortgage insurance premiums, transfer taxes, and prepaid interest on the loan. All of these fees should be disclosed to the borrower on the Good Faith Estimate and the HUD-1 settlement statement.  Some borrowers also choose to pay points at closing to buy down the interest rate on their mortgage. A point is equal to 1 percent of the loan amount. For example, one point on a $200,000 loan would be $2,000. The amount of interest rate reduction that can be bought for a set number of points depends on the prevailing market rate at the time of the loan origination.

A period of time, such as the term of a lease, the considerations, other than price, in a sale, lease or mortgage.  For example; the way the money will be paid, the time to take possession, conditions, etc.

Those expenses of property which are paid in advance and will usually be prorated upon sale, such as taxes, insurance, rent, county sewer, garbage, and homeowner’s association fees.

The lender is required to provide the borrower with two copies to each borrower the notice of the Right to Rescind, and a copy of the disclosure statement. This will allow the borrower to cancel the request application to refinance their home mortgage without cost to the consumer. The Right to rescind must be exercised by the third business day by midnight of the following acknowledgment of the transaction. The right of rescission was created to protect consumers from unscrupulous lenders and to give borrowers a cooling-off period and the time to change their minds. Not all mortgage transactions have the right of rescission. The right of rescission exists only on home-equity loans, home-equity lines of credit, and refinances of existing mortgages in which the refinancing is done with a lender other than the current mortgagee. The right of rescission does not exist on a mortgage for the purchase of a home, a refinance transaction with the existing lender, a state agency mortgage, and a mortgage on a second home or investment property.

Non-public Personal Information is any data or information considered to be personal in nature and not subject to public availability.

A disclosure that gives the consumer the right to advise the institution not to share their Non-public information, must be provided on an annual notice once a customer relationship has been established.

The term opt-out refers to several methods by which individuals can avoid receiving unsolicited product or service information. This ability is usually associated with direct marketing campaigns such as telemarketing, e-mail marketing, or direct mail.

Cash portion paid by a buyer from his own funds as opposed to that portion of the purchase price which is financed.

The Annual Percentage Rate is not the interest rate on the Note for which the borrower has been approved for. The ARR is the cost of the loan in percentages, taking into consideration various loan charges of which interest is only one charge. The yearly cost of a mortgage, including interest, mortgage insurance, and the origination fee, points, expressed as a percentage. The APR is a calculated by spreading the specified charges over the lifetime of the loan which results in a much higher rate than the approved rate by the lender.

The annual percentage rate can be looked at in two primary ways: the nominal rate, which is a non-adjusted simple rate, or the effective rate, which takes compound interest into account. While the nominal rate is relatively straightforward, there can be many different ways of calculating the effective rate, depending on how fees are factored into the equation.

The APR is the simplified counterpart to the effective interest rate that the borrower will pay on a loan. When not using the term “effective APR”, the use of “APR” is an early term for normal APR. In many jurisdictions, lenders are required to disclose the “cost” of borrowing in some standardized way as a form of consumer protection.

APR is intended to make it easier to compare lenders and loan options. The APR is likely to differ from the “note rate” or “headline rate” advertised by the lender, due to the addition of other fees that may need to be included in the APR. APRs can be found by asking the lender or by reading the appropriate section in the disclosures.

The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered to be a low-risk investment because they are backed by the full faith and credit of the U.S. government, which includes the government’s authority to raise taxes to cover its obligations. Because of their low risk, treasuries have a low return compared to many other investments.

The HUD-1 Settlement Statement is a standard form in use in the United States of America which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. The borrower has the right to inspect the HUD-1 one day prior to the day of settlement. The form is filled out by the settlement agent who will conduct the settlement. Since 2010, the HUD-1 settlement statement also contains what is referred to as a Good Faith Estimate or GFE. This additional set of figures specifies estimated settlement figures provided by the lender upon application of the loan. Borrowers may compare their Good Faith Estimate to the HUD-1 Settlement Statement and ask their lender or broker about any.

A clause in a mortgage contract that says if the mortgage is prepaid within a certain time period, a penalty will be assessed. The penalty is usually based on the percentage of the remaining mortgage balance or a certain number of months of interest. A prepayment penalty that applies to both the sale of a home and a refinancing transaction is called a “hard” prepayment penalty. A prepayment penalty that applies to refinancing only is called a “soft” prepayment penalty. Lenders write prepayment penalties into mortgage contracts to compensate for prepayment risk. As the incentive for a borrower to refinance a subprime mortgage is high, many subprime mortgages have prepayment penalties.

An oversized payment due at the end of a mortgage, because the entire loan amount is not amortized over the life of the loan, the remaining balance is due as a final repayment to the lender.

A detailed information page that better explains terms and cost to a consumer.

Yield Spread Premium or YSP is a rebate paid by a lender to a mortgage broker for brokering a loan to that lender. YSP is basically a rebate that someone gets for brokering a loan to a lender. It is not paid by the borrower (except that the homeowner’s interest rate could be higher which will have them paying more over time)

It’s the standard application form for the lending industry. The lender may accept applications taken during a face-to-face interview, over the telephone, through the mail, or via the Internet. The lender should complete all blanks and attach any separate exhibits, details, or statements that are relevant to underwriting the mortgage. The borrower(s) must sign the original application at the time it is completed. If the application is taken over the telephone or via the Internet, the borrower(s) must sign the completed application as soon as possible thereafter. However, an electronic signature or facsimile of the borrower’s signature is acceptable as indicated in the “Acknowledgment and Agreement” section of the application. The lender should retain the original application with the supporting information provided by the borrower(s). Before or at the loan closing, the borrower(s) must sign the final application that the lender prepares based on its verification of the information that the borrower(s) provided in the original application.

Every day of the week except Sundays and Legal Holidays.

Monday – Friday 9 a.m. – 5 p.m. (PST)

The Department of Housing and Urban Development (HUD) is a U.S. government agency created in 1965 as part of then-President Lyndon Johnson’s Great Society agenda to expand America’s welfare state. Its primary mission is to improve affordable homeownership opportunities to support the housing market and homeownership in inner-city areas.

HUD’s programs are geared toward increasing safe and affordable rental options, reducing chronic homelessness, and fighting housing discrimination by ensuring equal opportunity in the rental and purchase markets, and supporting vulnerable populations.

The Fair Housing Act prohibits discrimination in housing based on sex, race, color, national origin, religion, family status, and disability. HUD investigates any cases concerning the refusal to rent or sell a property, denying someone a dwelling, falsely stating that properties are unavailable, and imposing different terms or conditions based on any of the aforementioned discriminating conditions.

HUD requires all lenders to use the new standardized format for Good Faith Estimates effective January 1, 2010. In efforts to facilitate a better shopping experience for consumers, HUD requires all lenders to use the new standardized GFE to better explain the terms and estimated costs of a loan.

This is a booklet published by HUD that describes important terms and provides information about the home buying and mortgage loan process.

This is a disclosure statement that your broker must give you per RESPA guidelines. The disclosure outlines the right of the lender to sell the servicing of your loan while it is still outstanding. This disclosure outlines your rights as the consumer, so please make sure you review and ask questions if there is something you do not fully understand.

If the servicing of your loan is assigned, sold, or transferred to a new servicer, you must be given written notice of that transfer. The present loan servicer must send you notice in writing of the assignment, sale, or transfer of the servicing not less than 15 days before the effective date of the transfer. The new loan servicer must also send you notice within 15 days after the effective date of the transfer.

The day escrow or the transaction closes

A Truth in Lending disclosure statement is one of the more important documents in the mortgage process. It is designed to help borrowers understand their borrowing costs in their entirety. Federal law requires that lenders provide a Truth in Lending (TIL) document to all loan applicants within three business days of receiving a loan application, disclosing all costs associated with making and closing the loan.

A fee, often a percentage of the total principal of a loan, charged by a lender to a borrower on initiation of the loan.

Discount Points are fees paid to a lender at closing in order to lower your mortgage interest rate. While buying points is sometimes a good decision, many times the purchase costs you more than it saves

A home Appraisal is a survey of a home by a professional for their opinion of the property market value. In most cases, an appraisal is done for a bank when a home is being approved for a loan for the home buyer. The home appraisal is a detailed report that looks at such items as the condition of the home, the neighborhood, what similar homes are selling for, and how quickly similar homes sell (to name a few). The appraisal may be a sales comparison or a cost/replacement opinion of value. There is also an income appraisal, but this is done primarily with commercial properties. The sales comparison will look at other properties in your neighborhood and what they are selling for and then figure out how they compare to your home. With a cost/replacement opinion of value, the appraiser is looking at what it would cost to replace the home if destroyed; this is more commonly used for new homes.

A Credit Report contains information about your borrowing history. Lenders (and others) provide information that ends up on credit reports. They report how much you’ve borrowed, how you’ve repaid, and other details about your borrowing behavior

You normally find this on new construction and is associated with what is called a 442 inspection. Since the property is not finished when the initial appraisal is completed, the 442 inspection verifies that construction is complete with carpeting and flooring installed

Mortgage brokers are lending industry professionals who help individuals to agree to the terms of a loan with a lender. A mortgage broker fee is a commission paid by the borrower to the person who brokered the loan. The broker typically receives this fee during or immediately after the loan closing. Broker Fees, like most other mortgage-related fees, are usually charged as a percentage of the total loan amount.

The Tax Service Fee is a fee to hire a company that checks behind the county tax collection recording clerk to assure they have applied the tax payment to the correct tax parcel.

This fee is for the processing of your mortgage loan; which is one of the most important tasks in the presentation of your mortgage request to the lender. Processing is a skill that improves over time and experience. Processing contains all proof of income, as well as debts, monthly payments, and credit information. It will also contain explanations for possible negative credit items in your past. Your approval will be affected by how well all of your information is assembled and presented to the underwriter. The fee represents the most quality work that gets the loan approved. Without it, no loan will be processed, as it is entirely too much intensive work that requires special expertise to do free of charge

The Underwriting Fee covers a host of costs that your mortgage lender incurs when processing and approving your loan. With underwriting fees, lenders are basically charging you for the work they do to evaluate the amount of risk you bring to the closing table. Lenders don’t want you to pay your mortgage bills late, miss payments, or eventually default on your loan. To determine how likely you are to do so, they’ll evaluate factors such as your credit score, level of monthly debts, and gross monthly income.

If lenders determine that you’re more likely, because of these financial factors, to default on your loan, they’ll either refuse to lend you money or charge you higher interest rates to mitigate their risk. This evaluation process takes time. Lenders have to study financial documents, pull your credit and verify your employment. The biggest portion of the underwriting fees that they charge you pay for this time and effort.

Wire transfer is an electronic service for sending money between accounts and institutions. Funds* are withdrawn from the account at one location and then credited to a destination account. Fees for this service are called wire transfer fees.

An Escrow Fee is for an escrow company that usually serves as a neutral intermediary between all the parties involved in a real estate or mortgage transaction. These parties can include homeowners, sellers, buyers, lenders, brokers, insurance agents, appraisers, and notaries. A mortgage loan usually involves a very large amount of paperwork. This is necessary to protect all the parties involved, including buyers, sellers, lenders, and others. The escrow agent also handles the transfer of money between the parties. A lender will wire money into an escrow account. If it is a refinance to cash equity out the escrow agent will deduct the relevant fees owed to other parties and pay the remainder out to the borrower.

If the transaction is a real estate purchase the escrow agent will receive money from the lender, pay off any existing mortgages and closing costs, collect any buyer deposits, and give the rest as sales proceeds to the lender. After any transaction, the relevant public records are updated to reflect the ownership of a property and the newly recorded liens.

An additional fee for services actually performed.

A Notary Fee is a charge paid to a notary public in return for his or her services. Notary fees may vary based on the type of service required and the region. Many regions have a specific schedule regarding the amount of notary fee per service, so it may be wise to find out these maximum charges before having documents notarized or partaking of other services under a notary’s jurisdiction.

Attorney Fees are for compensation for legal services performed by an attorney, lawyer, or law firm for a client, in or out of court. It may be an hourly, flat-rate, or contingent fee. Attorney fees are separate from fines, compensatory and punitive damages, and except in Nevada, from court costs in a legal case.

When you get a new mortgage, you will have to pay for a title search, so that the mortgage company can be satisfied that the title to the property can be conveyed to you. The title company will look back through the property abstract to make sure that ownership of the property has been conveyed properly over the years. This research is necessary so that you can take possession of the property without any encumbrances.

The Recording Fee is a fee for the recording of your mortgage which will be the last thing done to complete the process making it part of the public records. You will see this fee under Government Recording and Transfer Charges on the Good Faith Estimate and your closing statement.

A real estate stamp tax fee, more commonly known as a real estate transfer tax, is a fee assessed during the transfer of real estate between two parties. The name “stamp tax” comes from the physical or ink stamp that is impressed upon property deeds when transfer fees have been paid to the city, county, or state. It is usually customary for the seller to pay the transfer tax, although some states and counties levy a stamp tax on both buyers and sellers.

A real estate stamp tax fee, more commonly known as a real estate transfer tax, is a fee assessed during the transfer of real estate between two parties

Pest Inspections are most typically performed as part of a real estate transaction when a home is changing hands. Many banks and lending agencies now require a pest inspection to be done before a real estate transaction is completed.

Daily interest on the mortgage

It’s a financial guarantee that insures lenders against loss in the event a borrower defaults on a mortgage. If the borrower defaults and the lender takes title to the property, the mortgage insurer reduces or eliminates the loss to the lender. In effect, the mortgage insurer shares the risk of lending the money to the borrower.

Hazard Insurance protects a homeowner against the costs of damage from fire, vandalism, smoke, and other causes. When you take out a mortgage, the lender will require you to take out hazard insurance to protect their investment; many lenders will incorporate the insurance payment into your monthly mortgage payment.

The VA Funding Fee is a set fee charged to each veteran who is closing a mortgage with the Veteran’s Administration. The fee varies based on the situation and the down payment on the loan itself.

These are deposits paid by the borrower to the lender for homeowners insurance, taxes, and sometimes mortgage insurance and assessments, these deposits are placed into an account called an escrow impound account.

These are deposits paid by the borrower to the lender for homeowners insurance, these deposits are placed into an account called an escrow impound account.

These are deposits paid by the borrower to the lender for Mortgage Insurance, these deposits are placed into an account call an escrow impound account.

Taxes paid on county school services.

Property tax is most commonly based on the value of real property, improved or unimproved land, or the value of personal property. The authority to levy property taxes is defined by state law. Most property taxes are based on what is called “ad valorem,” or the property’s assessed or appraised value. Property taxes help pay for local government services, including public schools, fire and police, roads and bridge infrastructures, parks, streets, sewer and water treatment, garbage pickup and removal, and public libraries.

These are reserves for Flood Insurance coverage; this provides protection to a home or other property against damage from flooding. A variety of events can cause flood damage, including high water from creeks and rivers entering a home, leaking basement walls, and rainwater runoff. Many homeowners are unaware that standard homeowner’s insurance policies do not cover flood damage. Insurance companies sell flood insurance as a separate product from homeowner’s insurance. Homeowners should be aware of how flood insurance works, what it protects, and who must have coverage.

An evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a home mortgage, or the maximum amount that the lender would be willing to lend. The Pre-Approval process involves a review of the income and expenses of the borrower, including a look at the borrower’s credit report and score, this approval is not a guarantee to lend.

A POC mortgage fee is an extra fee that is not included in the closing sum of your mortgage settlement statement. POC stands for “paid outside of closing.” Responsibility of the buyer/borrower is usually responsible for paying any POC mortgage fees before the closing or settlement.

The loan officer in the transaction.

The Loan Amount the borrower is applying for.

The Interest Rate the lender is offering.

This statement itemizes the estimated insurance premiums, taxes, and other monthly related charges that are anticipated to be paid out of the borrower’s impound account within a twelve-month period. The lender will normally provide this statement before closing but RESPA does allow the lender forty-five days from the day of Settlement/ Closing.

Impound Mortgage Accounts, also known as Escrow Accounts, are established between the homeowner and a lending institution. At the time of the loan’s closing, the buyers deposit money into the account. This money will be used to cover any taxes and insurance fees due at the time. Because property taxes and homeowner’s insurance premiums are usually due once or twice a year, they are lump sums. The impound account option will allow the homeowners to pay smaller amounts each month toward the lump sum. The amount is added to the monthly mortgage payment made to the bank.

Individual title insurance policies are designed to protect an owner of real estate, as well as a lender with a mortgage on the property, against losses or damages that arise due to unforeseen encumbrances on the deed, including title defects and liens, according to the California Department of Insurance. A lender can determine the extent of coverage it believes is required. This includes the types of encumbrances protected through a title insurance policy. Common encumbrances that likely are not covered include mineral rights granted to another party. The function of title insurance, and the primary reason a lender demands it, is to ensure that the lender is protected if a third party claims an interest in the real estate that was not disclosed at the time the lender executed a mortgage agreement with the owner.

Title insurance is a form of insurance that is unique to the United States. In general, title insurance insures real-estate owners against defects in title to their property and insures lenders such as banks against the risk of invalid or unenforceable mortgages. Title insurance insures against known and unknown risks.

Whether you are financing the purchase of a home or refinancing your existing mortgage loan with a new loan, you will prepay interest. How much interest is prepaid will determine when you want your first payment to begin. Many borrowers prefer to make a mortgage payment on the first of every month. Some prefer the 15th. Sometimes lenders will choose that payment date for you, so ask if you have a preference.

When the borrower rate is locked.

The Truth in Lending Act (TILA), Title I of the Consumer Credit Protection Act, is aimed at promoting the informed use of consumer credit by requiring disclosures about its terms and costs. This regulation applies to each individual or business that offers or extends credit when the credit is offered or extended to consumers; the credit is subject to a finance charge or is payable by a written agreement in more than four installments; the credit is primarily for personal, family or household purposes; and the loan balance equals or exceeds $25,000.00 or is secured by an interest in real property or a dwelling.

TILA is intended to enable the customer to compare the cost of cash versus credit transactions and the difference in the cost of credit among different lenders. The regulation also requires a maximum interest rate to be stated in variable-rate contracts secured by the borrower’s dwelling, imposes limitations on home equity plans that are subject to the requirements of certain sections of the Act, and requires a maximum interest that may apply during the term of a mortgage loan. TILA also establishes disclosure standards for advertisements that refer to certain credit terms.

Consumer Handbook On Adjustable-Rate Mortgages (the CHARM Booklet) is an informational handbook published by the Federal Reserve Board that provides a loan applicant with key information on Adjustable Rate Mortgages (ARM’s) and is required, by Regulation Z, to be provided by the lender to the loan applicant at the time of application for certain mortgage loans

This is to give the consumer notice that the referring party has a business relationship with settlement services providers. Describe the nature of the relationship between the referring party and the providers, including a percentage of ownership interest, if applicable. Because of this relationship, this referral may provide the referring party with a financial or another benefit.

This is a disclosure statement that your broker must give you per RESPA guidelines. The disclosure outlines the right of the lender to sell the servicing of your loan while it is still outstanding. This disclosure outlines your rights as the consumer, so please make sure you review and ask questions if there is something you do not fully understand. If the servicing of your loan is assigned, sold, or transferred to a new servicer, you must be given written notice of that transfer. The present loan servicer must send you notice in writing of the assignment, sale, or transfer of the servicing not less than 15 days before the effective date of the transfer. The new loan servicer must also send you notice within 15 days after the effective date of the transfer.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance. Creditors may ask you for most of this information in certain situations, but they may not use it when deciding whether to give you credit or when setting the terms of your credit. Not everyone who applies for credit gets it or gets the same terms Factors like income, expenses, debts, and credit history are among the considerations lenders use to determine your creditworthiness. The law provides protections when you deal with any organizations or people who regularly extend credit, including banks, small loans, finance companies, retail and department stores, credit card companies, and credit unions. Everyone who participates in the decision to grant credit or in setting the terms of that credit, including real estate brokers who arrange financing, must comply with the ECOA.

A Tri-Merge report is one that combines credit reports from all three of the major credit bureaus. Experian, Equifax, and Transunion all compile their information independently, so obtaining a single credit report may not give you a complete picture of a tenant’s credit history. If you are considering a potential tenant’s creditworthiness, you may want to obtain a tri-merge report.

A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant’s credit risk and whether to extend a loan. FICO is an acronym for the Fair Isaac Corporation, the creator of the FICO Score.

Federally chartered corporation that purchases qualifying mortgages from lenders and sells securities backed by mortgage loans to investors. Fannie Mae, the largest source of home mortgage funding in the United States, purchases mortgages and mortgage-backed securities from financial institutions and guarantees timely payment of principal and interest to buyers of Fannie Mae-issued mortgage securities. When a bank lender delivers a pool of mortgage loans to Fannie Mae, Fannie Mae creates a Mortgage-Backed Security in exchange for the loans. The lender can hold the mortgage security in its own portfolio or sell it to investors. Fannie Mae buys federally insured or guaranteed mortgages and conforming mortgage loans, loans with an original principal amount under a Conforming Loan limit. This figure is adjusted annually. Fannie Mae raises its operating capital from the issuance of common stock, from the sale of notes and debentures, and from the guaranty fees it charges mortgage lenders. Created in 1938 as the Federal National Mortgage Association, Fannie Mae became an investor-owned corporation in 1968. In 1986 Fannie Mae made an important advance in mortgage securitization, issuing the first stripped mortgage-backed security-a mortgage security with an unequal distribution of principal and interest in a single mortgage pool.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability, and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. HomeSteps is the Freddie Mac sales unit responsible for marketing and selling Freddie Mac real estate-owned (REO) homes to homeowners and investors.

A Prepayment Penalty is a monetary penalty enforced upon a borrower when he or she pays a loan off earlier than was originally agreed. Loaning institutions enforce a prepayment penalty in order to guarantee they make a certain amount of money from loaning money to a borrower. Over the years, this type of penalty has been subject to great debate. As a result, not all loans have this as a requirement. Those who support the prepayment penalty practice argue that if a person takes out a loan, he or she is agreeing to pay a certain amount of interest over a certain amount of time. If the client pays the loan off sooner than originally agreed, there is less interest to pay. In this case, the lending institution stands to lose money on the original. Many lending institutions attach a prepayment penalty to a loan because loan refinancing has become relatively commonplace. If a consumer takes out a loan, pays on it for a period of time, and then refinances at a lower interest rate, he or she saves money. The lending institution that provided the original loan, however, loses out on the money that would have been earned from interest payments.

Also known as “Primary Mortgage Insurance” PMI is the lender’s (banks) protection in the event that you default on your primary mortgage and no longer make payments and the home ends up going into foreclosure. When applying for a home loan, lenders typically require that a borrower provides a 20% down payment on the home. If the borrower is unable to put down 20% or more or does not have the required funds to do so, then lenders will typically look at the loan as a riskier investment for their balance sheet and will require a PMI payment from the borrower. The PMI payment is usually paid monthly as part of the overall mortgage payment to the lender. Over several years of paying on the loan and once the borrower has paid enough towards the principal amount of the loan (to cover the 20%), they can contact their lender and ask that the PMI payment be removed. Many borrowers either forget or do not know that PMI can be removed once the accepted level is achieved.

In real estate, if the property has an Encumbrance on its title, this will affect the transferability of the title to another party.

The term Cloud on Title refers to any irregularity in the chain of title of a property, usually real property, that would give a reasonable person pause before accepting a conveyance of title. A cloud on title reduces the value and marketability of property because any prospective buyer aware of the cloud will know that they are buying the risk the grantor may not be able to convey a good title. Often, the discovery of a cloud on title will provide the grantee a reason to back out of a contract for the sale of real property

An Easement is a right given to another person or entity to trespass upon land that person or entity does not own. Easements are used for roads, for example, or given to utility companies for the right to bury cables or access utility lines. Landlocked homeowners sometimes pay for an easement to cross the land of another to reach their home. Easements run with the land. Almost every home has an easement. It is important to look for easements in the public records.

A Judgment is simply the official decision of a court at the completion of a lawsuit. It merely indicates that the court has resolved the issues brought before it in a lawsuit in favor of either the plaintiff or the defendant

A Contractor’s Lien is a statutory right that allows a person or company to file a lien against a piece of property to protect a contractor’s right to receive payment for services or materials provided. When a contractor files a lien, it creates a security interest against the property. The security interest prevents the property owner from selling the property unless the debt to the contractor is satisfied. If the property owner fails to pay the debt, the contractor may initiate foreclosure proceedings on the property to obtain payment for services or materials provided

A provision in a deed limiting the use of the property and prohibiting certain uses

The Principals in a real estate transaction are the buyer and the seller

To divide, distribute, or assess proportionately the fee’s collected in a transaction.

A Settlement Statement or Form HUD-1 is a document that indicates fees and charges that both the buyer and seller incur during the settlement process of a housing transaction. The U.S. Department of Housing and Urban Development administers Form HUD-1 and other documents necessary to close a real estate transaction.

Kickbacks are payment or offering of services with the intent to influence or gain something from a company or a person. Kickbacks may be less fancifully termed as bribes. They are often associated with white-collar type crimes and can occur in numerous work sectors or in politics.

The escrow account on your loan was established to pay certain bills associated with your property. These may include your real estate property taxes, homeowners insurance, flood insurance (if required), federal or private mortgage insurance (MIP or PMI), etc. The Annual Escrow Account Disclosure Statement is a review and recalculation of the escrow account based on actual amounts paid into the escrow account and actual amounts disbursed from the escrow account. The actual bill amounts disbursed from the escrow account are totaled and divided by 12 to determine the minimum required monthly escrow payment for the coming 12 months. Based on this anticipated billing activity, the amount needed to pay these future bills determines whether your escrow account has a shortage or a surplus, and how this affects your total monthly mortgage payment.

A single-family home

Blockbusting is a discriminatory housing practice that has been banned in many regions of the world, although documented instances of blockbusting continue to occur. Several steps are involved in blockbusting, with the ultimate result of driving one group of people out of a neighborhood and replacing them with another. Blockbusting often plays on fear and racially-fraught emotions to manipulate people, and some people argue that the technique has become less effective as people are more open to integrated communities.

Blockbusting is a discriminatory housing practice that has been banned in many regions of the world, although documented instances of blockbusting continue to occur. Several steps are involved in blockbusting, with the ultimate result of driving one group of people out of a neighborhood and replacing them with another. Blockbusting often plays on fear and racially-fraught emotions to manipulate people, and some people argue that the technique has become less effective as people are more open to integrated communities.