The party lending the money and receiving the mortgage. Some states treat the mortgagee as the "legal" owner, entitled to rents from the property. Other states treat the mortgagee as a secured creditor, the mortgagor being the owner. The latter is the more modern and accepted view.
The borrower or homeowner. Negative Amortization Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of negative amortization is that the home buyer ends up owing more than the original amount of the loan. Net Effective Income The borrower's gross income minus federal income tax. Non Assumption Clause A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. Note: The signed obligation to pay a debt, as a mortgage note.
The borrower. Go to Top negative amortization A situation in which a borrower is paying less interest than what is actually being charged for a mortgage loan. The unpaid interest is added to the loan's principal. The borrower may end up owing more than the original amount of the mortgage.
In a mortgage transaction, the buyer/borrower is the mortgagor. The mortgagor is required to sign a promissory note for the amount borrowed and to execute a mortgage to secure the debt. The mortgage note is creates a personal liability for payment on the part of the mortgagor. ( See mortgage , promissory note )
The borrower. Non-Conventional or Non-Conforming Mortgage A mortgage loan that does not conform to agency-established limits such as loan-to-value ratio, term and other characteristics. Usually the regulatory limits have to do with Fannie Mae, Freddie Mac and other government-established guidelines.
The borrower who gives security to the lender NHBC National House Builders Council. The NHBC provide a ten year warranty against major structural defects for new properties Office copy entries Certified copies of the land or charge certificate, obtained from the Land Registry, confirming ownership of the property Personal representative The person appointed by a will to act for the deceased owner Quarter days A lease will often specify that the rent and/or service charges are payable on "the usual quarter days". The usual quarter days are: 25 March - Lady Day, 24 June - Midsummer Day, 29 September - Michaelmas, 25 December - Christmas Redemption Paying off a mortgage
The party borrowing money secured by real estate and giving the mortgage. Payment An agreed upon dollar amount paid in regular installments by a Purchaser. The most common installment method for land contract payments is monthly payments. Per Annum - In or for each year; annually.
The borrower. Negative Amortization A gradual increase in the mortgage debt caused by unpaid interest that is added to the mortgage principal because the payment is not sufficient to cover the full amount of interest due.
A borrower who takes out a mortgage MPL (Maximum Probable Loss) The largest loss thought probable under a given insurance policy. Normally applied to material damage risks where the total sum insured is not considered to be at risk from one loss event
Borrower of a mortgage. egative Amortization The act of a mortgage debt increasing because payments made are insufficient to cover the amount of interest due. Interest not being paid is added to the balance of a mortgage and so the borrower would owe more the next period than the previous one.