www.visaliahomes.com

Terminology

Appraisal: An opinion of the value of property resulting from an analysis of facts affecting market value.

Bill of Sale: An instrument by which title to personal property is transferred or conveyed.

Cap: The maximum which an adjustable rate mortgage may increase, regardless of index changes.

Escrow: The process in which a disinterested third party holds money and documents for delivery to the respective parties in a transaction on performance of established conditions.

First Mortgage: A mortgage on property that is superior in right to any other mortgage.

Lien: A recorded document which claims an interest in real property as security for a debt owed. Such liability may be created by contract, such as a deed of trust, or by a court judgement.

Mortgage: A legal document used to secure the performance of an obligation.

Principal: The sum of money outstanding upon which interest is payable. Also refers to one who is served by an agent.

Proration: The method used in dividing charges into that portion which applies only to a party's ownership up to a particular date.

Trustee: A person who holds title in trust for the benefit of another. In a deed of trust, the trustee is the person named to hold title in trust for the benefit of the lender until the loan is paid off.