| Laches |
Delay or negligence in asserting one's rights. |
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| Land Contract |
A contract ordinarily used in connection with the sale of
property in cases where the seller does not wish to convey title until all or a
certain part of the purchase price is paid by the buyer. |
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| Landlord |
Usually the owner of the property being leased or rented, but
may also be another party who has the authority or right to lease or rent the
property to a Tenant. |
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| Late Charge |
The penalty a borrower must pay when a payment is made a
stated number of days (usually 10-15) after the due date. |
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| Latent Defect |
Hidden structural defects and flaws. |
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| Lease |
A written agreement between the property owner and a tenant
that stipulates the conditions under which the tenant may use the real estate
for a specified period of time and the amount of rent to be paid. |
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| Lease with Option to Purchase |
A lease under which the lessee has the right to purchase the
property. The option may run for the length of the lease or only for a portion
of the lease period. |
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| Lease With Option To Purchase |
A lease where the lessee has the option to purchase the leased
property. The terms of the purchase option must be set forth in the lease.
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| Leasehold Estate |
A tenant's interest in or right to hold possession of a
property. |
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| Legal Description |
A description of a specific parcel of real estate which is
acceptable to the courts in that state, and which will allows an independent
surveyor to locate and identify it. Usually it uses one of the following
methods; government survey, metes and bounds, or recorded plat (lot and block
number). |
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| Lender |
A mortgage company, bank, savings and loan, credit union or
financial company that grants loans. |
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| Lender's Fees |
Fees paid to the lender to cover costs associated with
processing, underwriting and closing of the loan. |
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| Lending Guidelines |
Every loan program has different guidelines. Guidelines are
used to meet Federal, State and Local laws and enforce minimum requirements by
the lender. Guidelines ensure that prospective borrowers won't purchase a home
that they won't be able to afford. |
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| Less Favorable Treatment |
Any time a person is treated differently on the basis of race,
sex, religion, color, familial status, disability, or national origin, either
by action or inaction, in the selling or leasing of real property, it is a
violation of the Fair Housing Laws. Also known as unequal treatment or
different treatment. |
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| Lessee |
Tenant leasing property. |
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| Lessor |
One who leases property to a tenant. |
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| Letter of Intent |
A formal method of stating that a prospective developer, buyer
or lessee, is interested in property. |
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| Leverage |
The use of a small investment to generate a greater rate of
return through borrowed funds. The most common form of leverage is a homeowner
using a small down payment to purchase a house. |
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| Liabilities |
A person's debts or financial obligations. Liabilities include
long-term and short-term debt, as well as potential losses from legal claims.
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| Liability Insurance |
Insurance coverage that offers protection against claims
alleging that a property owner's negligence or inappropriate action resulted in
bodily injury or property damage to another party. See also homeowners
insurance. |
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| Liber |
A Latin word for book. |
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| Lien Theory State |
State where legal title of mortgaged property resides with the
mortgagor (borrower), with the mortgage as a lien against the property. |
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| Lien |
A legal claim against a property that must be paid off when
the property is sold. A lien is created when you borrow money to purchase or
refinance a home loan or and with obtain a home equity loan. |
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| Life Time Cap |
Life time cap governs the maximum amount the interest rate
increase or decrease over the life of the loan. |
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| Life Estate |
An estate in real property for the life of a living person.
The estate then reverts back to the grantor or on to a third party. |
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| Lifetime Rate Cap |
- For an adjustable-rate mortgage (ARM), a limit on the amount
that the interest rate can increase or decrease over the life of the loan. See
cap. |
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| Lifetime Cap |
A provision of an ARM that limits the highest rate that can
occur over the life of the loan. |
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| Limited Partnership |
A partnership consisting of one or more general partners who
conduct the business and are responsible for losses, and one or more special
partners, contributing capital and liable only to the amount contributed. |
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| Line/Loan Amount |
The entire HELOC or Fixed Rate Second mortgage loan amount.
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| Line Of Credit |
An agreement by a lender to extend credit up to a certain
amount for a certain time without the need for the borrower to file another
application. See home equity line of credit. |
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| Liquid Asset |
A cash asset or an asset that is easily converted into cash.
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| Lis Pendens |
A legal notice recorded to show pending litigation relating to
real property and giving notice that anyone acquiring an interest in said
property subsequent to the date of the notice may be bound by the outcome of
the litigation. |
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| Listing Agreement |
The legal agreement between the listing agent/broker and the
vendor, setting out the services to be rendered, describing the property for
sale, and stating the terms of payment. |
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| Listing |
A written sales contract between a sales agent and owner to
sell property under certain conditions. |
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| Listing Contract |
An agreement between a homeowner and a licensed real estate
broker that authorizes the broker to market the property for sale during a
given time period. |
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| Loan Origination |
The process by which a mortgage lender makes a home loan and
records a mortgage against the borrower's real property as security for
repayment of the loan. |
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| Loan Origination Fee |
A fee charged by the lender for evaluating, preparing and
submitting a proposed mortgage loan. |
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| Loan-To-Value Ratio |
The ratio of the total amount borrowed on a mortgage against a
property compared to the appraised value of the property. For example, if you
have an $80,000 1st mortgage on a home with an appraised value of $100,000, the
LTV is 80% ($80,000 / $100,000=80%). |
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| Loan Commitment |
A written promise by a lender to make a loan under certain
terms and conditions. These include interest rate, length of the loan, lender
fees, annual percentage rate, mortgage and hazard insurance and other special
requirements. |
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| Loan Ratio |
The amount of a loan to the value or selling price of real
property. |
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| Loan Package |
The information given to the lender regarding the borrower and
the property necessary to decide to give or not to give the loan. |
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| Loan-to-value ratio |
Expressed as a percentage, this ratio compares the amount of a
loan to the value or selling price of a property. Usually, the higher the
percentage, the higher the interest charged by the lender for the loan. Maximum
percentages for banks, savings and loans, or government-insured loans are set
by statute. |
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| Loan Commitment |
A lender's agreement to advance money on specified terms after
specified conditions are met. See commitment letter. |
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| Loan Amount |
The amount of money you want to borrow to purchase or
refinance a home. Also called the principal and is generally repaid over time
with interest. |
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| Loan Commitment |
A written promise by a lender to make a loan under certain
terms and conditions. These include interest rate, length of the loan, lender
fees, annual percentage rate, mortgage and hazard insurance and other special
requirements. |
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| Loan-to-Value Percentage (LTV) |
The relationship between the unpaid principal balance of the
mortgage and the appraised value (or sales price if it is lower) of the
property. |
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| Loan Servicing |
The collection of mortgage payments from borrowers and related
responsibilities of a loan servicer. |
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| Loan Program |
Typically a lender will have several types of loan programs
available. They are described in accordance with the major features of the loan
program. For example, a loan described as a "Fixed 30 Year" would
mean that the interest rate and payment remain fixed over the thirty year life
of the loan. A program described as "Fixed/ARM 5/1" means that the
interest rate and payment remain fixed for the first five years, and then it is
subject to adjustments every year thereafter. |
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| Lock-In Period |
The time period during which the lender has guaranteed an
interest rate to a borrower. See lock-in. |
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| Lock or Lock In Rate |
A commitment you obtain from a lender assuring you a
particular interest rate or feature or a definite time period. Provides
protection should interest rates rise between the time you apply for a loan,
acquire loan approval, and, subsequently, close the loan and receive the funds
you have borrowed. |
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| LTV (Loan to Value Ratio ) |
The ratio of the mortgage loan principal (amount borrowed) to
the property's appraised value. On a $ 100,000 home, with a mortgage loan of $
80,000, the loan to value ratio is 80% |