Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of
consumer credit reports by consumer/credit reporting agencies
and establishes procedures for correcting mistakes on one's
The highest price that a buyer, willing but not compelled
to buy, would pay, and the lowest a seller, willing but not
compelled to sell, would accept.
Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban Development
(HUD). Its main activity is the insuring of residential mortgage
loans made by private lenders. The FHA sets standards for
construction and underwriting but does not lend money or plan
or construct housing.
The greatest possible interest a person can have in real estate.
An unconditional, unlimited estate of inheritance that represents
the greatest estate and most extensive interest in land that
can be enjoyed. It is of perpetual duration. When the real
estate is in a condominium project, the unit owner is the
exclusive owner only of the air space within his or her portion
of the building (the unit) and is an owner in common with
respect to the land and other common portions of the property.
A mortgage (under FHA Section 244) for which the Federal Housing
Administration (FHA) and the originating lender share the
risk of loss in the event of the mortgagor's default.
A mortgage that is insured by the Federal Housing Administration
(FHA). Also known as a government mortgage.
A fee or commission paid to a mortgage broker for finding
a mortgage loan for a prospective borrower.
A lenders agreement to make a loan to a specific borrower
on a specific property.
A mortgage that is the primary lien against a property.
The monthly payment due on a mortgage loan. The fixed installment
includes payment of both principal and interest.
A mortgage in which the interest rate does not change during
the entire term of the loan.
Personal property that becomes real property when attached
in a permanent manner to real estate.
Insurance that compensates for physical property damage resulting
from flooding. It is required for properties located in federally
designated flood areas.
The legal process by which a borrower in default under a mortgage
is deprived of his or her interest in the mortgaged property.
This usually involves a forced sale of the property at public
auction with the proceeds of the sale being applied to the
The loss of money, property, rights, or privileges due to
a breach of legal obligation.
An employer-sponsored investment plan that allows individuals
to set aside tax-deferred income for retirement or emergency
purposes. 401(k) plans are provided by employers that are
private corporations. 403(b) plans are provided by employers
that are not for profit organizations.
Some administrators of 401(k)/403(b) plans allow for loans
against the monies you have accumulated in these plans --
monies must be repaid to avoid serious penalty charges.
An adjustable-rate mortgage (ARM) with a monthly payment that
is sufficient to amortize the remaining balance, at the interest
accrual rate, over the amortization term.