A technique in which a seller deeds property to a buyer for
a consideration, and the buyer simultaneously leases the property
back to the seller.
A mortgage that has a lien position subordinate to the first
The buying and selling of existing mortgages.
A loan that is backed by collateral.
The property that will be pledged as collateral for a loan.
An agreement in which the owner of a property provides financing,
often in combination with an assumable mortgage. See owner
An organization that collects principal and interest payments
from borrowers and manages borrowers escrow accounts.
The servicer often services mortgages that have been purchased
by an investor in the secondary mortgage market.
The collection of mortgage payments from borrowers and related
responsibilities of a loan servicer.
to four-unit properties including detached homes, townhomes,
condominiums, and cooperatives.
An account that is established for rehabilitation mortgages
to hold the funds needed for the rehabilitation work so they
can be disbursed from time to time as particular portions
of the work are completed.
The method used to determine the monthly payment required
to repay the remaining balance of a mortgage in substantially
equal installments over the remaining term of the mortgage
at the current interest rate.
A mortgage that allows for the interest rate to increase according
to a specified schedule (i.e., seven years), resulting in
increased payments as well. At the end of the specified period,
the rate and payments will remain constant for the remainder
of the loan.
A housing development that is created by dividing a tract
of land into individual lots for sale or lease.
Any mortgage or other lien that has a priority that is lower
than that of the first mortgage.
An alternative financing option known as the Community Seconds®
mortgage for low- and moderate-income households. An investor
purchases a first mortgage that has a subsidized second mortgage
behind it. The second mortgage may be issued by a state, county,
or local housing agency, foundation, or nonprofit corporation.
Payment on the second mortgage is often deferred and carries
a very low interest rate (or no interest rate). Part of the
debt may be forgiven incrementally for each year the buyer
remains in the home.
A drawing or map showing the precise legal boundaries of a
property, the location of improvements, easements, rights
of way, encroachments, and other physical features.
Contribution to the construction or rehabilitation of a property
in the form of labor or services rather than cash.