Bankruptcy, Foreclosure, Short Sales, Chapter 7 Chapter13 Deed in Lieu FHA Secure Hope Now Financial Advice Fair Debt Credit Reporting Act Bank Work-out Credit Repair Gary Seymour

 
 
 

                Justice For Homeowners...
                     
 Foreclosures, Bankruptcy and Other Related Topics 

Bankruptcy, Foreclosure, Short Sales, Chapter 7 Chapter13 Deed in Lieu FHA Secure Hope Now Financial Advice Fair Debt Credit Reporting Act Bank Work-out Credit Repair Gary Seymour

 

Bankruptcy, Foreclosure, Short Sales, Chapter 7 Chapter13 Deed in Lieu FHA Secure Hope Now Financial Advice Fair Debt Credit Reporting Act Bank Work-out Credit Repair Gary Seymour

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What Options Does a “Homeowner” Have When Facing Foreclosure?
United States Bankruptcy Courts and laws by state    

Mortgage and Foreclosure Terms and Definitions

   
Bankruptcy Terms and Definitions    
See Attorney Gary Seymour's interview on Connecticut Channel 8
Read Attorney Gary Seymour's Press Release    
     

Justice For Homeowners! Be Debt Free in 2008! We're Here to Help!

If you are considering a Chapter 7 bankruptcy, the lawyers of Seymour Law Firm LLC will speak to you free of charge, answering your questions at no obligation. It is important to know what a Chapter 7 bankruptcy can do for you, and what it can't. The Chapter 7 bankruptcy lawyers of Seymour Law Firm LLC can answer your questions and help you figure out your best option. If you decide to hire us, we can work out a payment plan, if necessary, that you can live with. Contact us right away.

Frequently Asked Questions about Chapter 7

Q: How does Chapter 7 liquidation work?

A: In a Chapter 7 case, the debtor must turn his or her nonexempt property over to a bankruptcy trustee, who then converts the property into cash by selling it and pays the debtor's creditors from the sale proceeds. In return, the debtor receives a Chapter 7 discharge if he or she pays the filing fee, is eligible for such a discharge, and obeys the court's directives.

Q: Who is ineligible for a Chapter 7 discharge?

A: A person may not be eligible for a discharge under Chapter 7 if he or she has been granted a discharge in a Chapter 7 case filed within the last eight years or in a Chapter 13 case filed within the last four years; if he or she engages in certain fraudulent conduct related to the bankruptcy or his or her financial situation; or if he or she refuses to answer questions or obey orders of the bankruptcy court; or if he or she fails to qualify under the financial means test.

Reasons for a Chapter 7 Bankruptcy
Our attorneys believe very strongly in the power of a bankruptcy to help people through difficult times. People come to us burdened with medical bills from a sudden illness or injury. Some may come to us after having made mistakes with credit cards.

It is only after extensive study of your debts that we advise whether or not bankruptcy is appropriate for you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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About Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also known as "debt liquidation," in that it takes many of your assets, sells them, and then wipes some of your debts clean. There are many important things to know:

  • As soon as you file for bankruptcy, all creditor harassment and collection lawsuits must stop immediately.
  • You can agree to give up your car or home to the debt liquidation, but you do not have to. It depends on your particular circumstances.
  • Not all debts can be erased by a Chapter 7. For example, some tax debt can not, but credit card debt can.

Both individuals and small businesses can find themselves with more debts than they can pay when due. In such cases, filing bankruptcy may provide a solution to what seems like an insurmountable problem. Bankruptcy law provides two basic forms of relief: (1) liquidation; and (2) rehabilitation, also known as reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. A skillful attorney can advise individuals and businesses alike on whether Chapter 7 may be the right choice for them. The bankruptcy lawyer's goals are to help debtors make a fresh start and ensure that creditors get paid.

Because bankruptcy law is primarily federal in origin, it varies little from state to state. The individual states do, however, retain jurisdiction over certain debtor-creditor issues that are not addressed by and do not conflict with federal bankruptcy law, such as which property remains exempt from creditors' claims.

Debts that Remain After a Chapter 7 Discharge
The rules on which debts are discharged, or eliminated, are different depending on which type of bankruptcy is filed. A lawyer experienced in bankruptcy law can advise his or her clients on whether and how particular debts will be affected by a bankruptcy discharge. Generally speaking, in a Chapter 7 proceeding, the following debts are not discharged.

What is a "Discharge" Under Chapter 7?
"Discharge" in the bankruptcy sense refers to clearing the debtor's slate of all, or most, past debts. Although many people expect that filing bankruptcy will wipe out all of their debts, it is not always the case. Bankruptcy only discharges certain debtors of certain debts. The availability of discharge depends on the type of bankruptcy proceeding involved, who the debtor is, and what type of debts the debtor has. An experienced bankruptcy attorney can advise his or her clients as to which debts will be discharged by a Chapter 7 bankruptcy and which debts will remain.

Exempt vs. Non-exempt Property Under Chapter 7
In a Chapter 7 liquidation case, the debtor has to turn certain property over to the bankruptcy trustee so that the property can be sold and the proceeds used to pay off debts. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. Experienced bankruptcy lawyers can answer these and other questions, allay fears, and keep the process moving forward as painlessly as possible.

Non-Bankruptcy Workouts

The term "workout" is used to describe a non-bankruptcy negotiated modification of debt. More simply stated, a workout is an agreement worked out between a debtor and his or her creditors for repayment of the debts between them, which is negotiated without all the procedural complications-and perhaps the stigma-of the bankruptcy process. Lawyers experienced in bankruptcy and debtor-creditor law can advise both debtors and creditors on whether a non-bankruptcy workout may be their best course of action.


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Alternatives to Chapter 7

Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.

In addition, individual debtors who have regular income may seek an adjustment of debts under chapter 13 of the Bankruptcy Code. A particular advantage of chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to "catch up" past due payments through a payment plan. Moreover, the court may dismiss a chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of chapter 7. 11 U.S.C. § 707(b).

If the debtor's "current monthly income"(1) is more than the state median, the Bankruptcy Code requires application of a "means test" to determine whether the chapter 7 filing is presumptively abusive. Abuse is presumed if the debtor's aggregate current monthly income over 5 years, net of certain statutorily allowed expenses, is more than (i) $10,000, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $6,000. (2) The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. Unless the debtor overcomes the presumption of abuse, the case will generally be converted to chapter 13 (with the debtor's consent) or will be dismissed. 11 U.S.C. § 707(b)(1).

Debtors should also be aware that out-of-court agreements with creditors or debt counseling services may provide an alternative to a bankruptcy filing.

Bankruptcy Statistics
The Administrative Office of the U.S. Courts compiles statistics on bankruptcy filings for each quarter ending December, March, June and September. The fiscal year for the federal Judiciary ends September 30. The calendar year ends December 31. Quarterly and 12-month statistics are available approximately 2 months after the close of a quarter.

Also visit:

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Contact Us

If you have any questions about Chapter 7 bankruptcy, our attorneys are always ready to help.
Contact us to speak with one of our lawyers, for no charge and at no obligation.

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What Options Does a “Homeowner” Have When Facing Foreclosure?
By Gary L. Seymour
As posted on moneycrossing.com and univision.com

Bankruptcy, Foreclosure, Short Sales, Chapter 7 Chapter13 Deed in Lieu FHA Secure Hope Now Financial Advice Fair Debt Credit Reporting Act Bank Work-out Credit Repair Gary SeymourOption 1:   Contact the Lender and ask for help before falling behind on payments!  Many homeowners assume that the Bank will not help them restructure payments or modify their mortgage. Although there is no guaranty that the lender will assist the homeowner, this is still the first place to start.  If there is little or no equity in the house the homeowner may decide to give the Bank the property by executing a deed in lieu of foreclosure.  In this scenario, the Bank releases the debt in return for the homeowner deeding the house to the bank. This may save the homeowner’s credit if it has not already gone bad. 

Option 2:  Refinancing may be an option if the homeowner is not yet in foreclosure.  Not too long ago this was all the rage. Now, in the age of falling home values and severely restricted lending programs, it is not nearly as easy to refinance.  In addition, refinancing often serves to only stem the tide and does nothing to actually solve the homeowner’s problem.  Refinancing will certainly not help the homeowner make more money to pay his debts.  If other debts such as credit cards are folded in, the homeowner’s payments can actually get higher! 

Option 3:   If the Bank will not work with the homeowner and the homeowner cannot find other resources to make payments, the homeowner should consult an attorney immediately.  Many states have statutes that help the homeowner when he is unable to make payments due to financial hardship.  Qualifying for help under the statutes may be hard, but it is worth a shot.

Option 4:  If the aforementioned options are not available to the homeowner, the Bank will foreclose usually within three months of non-payment. The homeowner should visit with an attorney and see if there are defenses to the foreclosure.  There is currently a ground swell around the idea of “predatory lending.”  Perhaps this can be asserted as a defense in to foreclosure.  The bottom line is that if the homeowner puts his head in the sand he will lose his home AND POTENTIALLY BE LIABLE FOR A DEFICIENCY JUDGMENT!

Option 5:   The homeowner may qualify to do a “short sale.”  A short sale occurs when the home is not worth the amount of the debt and expenses necessary to sell it.  For instance if a home is worth 350k but the bank is owed 380k there will not be enough money to pay the Bank off.  Add to that expenses of selling such as realtor commission, transfer taxes, attorney fees, etc. and there is potential for a 50k shortage.  In this scenario, the homeowner lists the property for sale with a realtor and solicits a buyer in the conventional way. When the offer comes in, it gets submitted to Bank for approval.  If the Bank approves the “short sale” then the homeowner will be relieved of the debt and it will be reported to the credit agencies as paid.      

Option 6:  The homeowner may qualify for either Chapter 7 or Chapter 13 Bankruptcy.  Chapter 7 allows the debtor to discharge all debts, including a deficiency judgment should the Bank obtain one.  In Chapter 7, the homeowner does not keep the home unless all payments are made under the original terms of the loan.  On the other hand, Chapter 13 allows the debtor to set up a payment plan through the bankruptcy court to be administered over several years. Provided all payments are made as scheduled the homeowner’s default with the Bank will be cured, and he will retain the home. The catch is that the homeowner must make enough money to support the Chapter 13 payment plan. 

Also visit:

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See more articles here   

United States Bankruptcy Courts and laws by state:

This section contains links to United States Bankruptcy Courts websites in each of the fifty states, and Puerto Rico.
                  
 

Alabama
Middle District of Alabama
Northern District of Alabama
Southern District of Alabama
Kentucky
Eastern District of Kentucky
Western District of Kentucky
 
North Dakota


 
Alaska Louisiana
Eastern District of Louisiana
Middle District of Louisiana
Western District of Louisiana
Ohio
Northern District of Ohio
Southern District of Ohio
Arizona

Arkansas

Maine Oklahoma
Eastern District of Oklahoma
Northern District of Oklahoma
Western District of Oklahoma
  Maryland Oregon
California
Central District of California
Eastern District of California
Northern District of California
Southern District of California
Massachusetts Pennsylvania
Eastern District of Pennsylvania
Middle District of Pennsylvania
Western District of Pennsylvania  
Colorado Michigan
Eastern District of Michigan
Western District of Michigan
 
Rhode Island
Connecticut Minnesota
 
South Carolina
Delaware Mississippi
Northern District of Mississippi
Southern District of Mississippi
South Dakota
District of Columbia Missouri
Eastern District of Missouri
Western District of Missouri
Tennessee
Eastern District of Tennessee
Middle District of Tennessee
Western District of Tennessee
 
Florida
Middle District of Florida
Northern District of Florida
Southern District of Florida
Montana Texas
Eastern District of Texas
Northern District of Texas
Southern District of Texas
Western District of Texas 
Georgia
Middle District of Georgia
Northern District of Georgia
Southern District of Georgia
 
Nebraska Utah
Hawaii Nevada Vermont
Idaho New Hampshire Virginia
Eastern District of Virginia
Western District of Virginia
Illinois
Central District of Illinois
Northern District of Illinois
Southern District of Illinois
New Jersey

New Mexico
Washington
Eastern District of Washington
Western District of Washington 
Indiana
Northern District of Indiana
Southern District of Indiana
New York
Eastern District of New York
Northern District of New York
Southern District of New York
Western District of New York
West Virginia
Northern District of West Virginia
Southern District of West Virginia
Iowa
Northern District of Iowa
Southern District of Iowa 
  Wisconsin
Eastern District of Wisconsin
Western District of Wisconsin
Kansas North Carolina
Eastern District of North Carolina
Middle District of North Carolina
Western District of North Carolina
Wyoming
Puerto Rico
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Mortgage and Foreclosure Terms and Definitions

                                A-B-C-D-E-F-G-H-I-J-L-M-N-O-P-Q-R-S-T -V- Z   Back to Top of Homepage

acceleration clause
A clause in a mortgage which allows the lender to demand payment of the outstanding loan balance. The most common reason for accelerating a loan is if the borrower defaults on the loan or transfers title to another individual without informing the lender.

adjustable-rate mortgage (ARM)
A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. ARM mortgages may begin as fixed mortgages for a short period of time and them become adjustable.

adjustment date
The date the interest rate changes on an adjustable-rate (ARM) mortgage.

amortization
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

amortization schedule
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. This may also show the corresponding loan balance until it reaches zero.

annual percentage rate (APR)
This is not the note rate on your loan. It is a value created according to a government formula that reflects the true annual cost of borrowing. The APR percentage will always be higher than the actual rate of your mortgage.

application (1003)
The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.

appraisal
A professional estimate for the value of a property. Appraisals are based on the condition of the property, as well as square footage and comparable sales of similar homes.

appraised value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. For nearly all purchase loans, the purchase price is considered the appraised value.

appraiser
An individual qualified by education, training, and experience to estimate the value of real property and personal property.

appreciation
The increase in the value of a property due to changes in market conditions, inflation, improvements and/or other causes.

assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.

assessment
The placing of a value on property for the purpose of taxation.

assessor
A public official who establishes the value of a property for taxation purposes.

asset
Any Item of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets". These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets such as: real estate, personal property, and debts owed to an individual by others are not considered "liquid assets".

assignment
When ownership of your mortgage is transferred from one lender or investor to another, it is called an assignment.

assumable mortgage
A mortgage that can be assumed by the buyer when a home is sold. The borrower must "qualify" in order to assume the loan.

assumption
The term applied when a buyer assumes the seller's mortgage.

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balloon mortgage
A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid. At that time, the owner will generally sell the property or refinance into a new mortgage.

balloon payment
The final lump sum payment that is due at the termination of a balloon mortgage.

bankruptcy
By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of twelve months after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

bill of sale
A written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

biweekly mortgage
A mortgage in which you make payments every two weeks instead of once a month. The result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment goes directly to the principal, substantially reducing the interest paid on a mortgage and the time it takes to pay off the mortgage.

broker
Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents may be brokers as well. In the mortgage industry, broker usually refers to a company or individual that does not lend money, but broker loans to larger lenders or investors. A broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

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cap
Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." 

cash-out refinance
When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a "cash out refinance."

Certificate of Eligibility
A document issued by the Veterans Administration that certifies a veteran's eligibility for a VA loan.

clear title
A title that is free of liens or legal questions as to ownership of the property.

closing
This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents record at the local recorders office. In others, the "closing" is a meeting where all of the documents are signed and money changes hands.

closing costs
Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.

co-borrower
IAn additional individual who is both obligated on the loan and is on title to the property.

collateral
In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.

collection
When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to "collection." As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.

commission
Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.

common law
An unwritten body of law based on general custom in England and used to an extent in some states.

community property
In some states, especially the southwest, property acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances.

comparable sales
Recent sales of similar properties in nearby areas and used to help determine the market value of a property. Also referred to as "comps."

condominium
A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.

construction loan
A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.

contingency
A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

contract
An oral or written agreement to do or not to do a certain thing.

conventional mortgage
Refers to home loans other than government loans (VA and FHA).

convertible ARM
An adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate mortgage within a specific time.

credit
An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.

credit history
A record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.

creditor
A person to whom money is owed.

credit report
A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.

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debt
An amount owed to another.

deed
The legal document conveying title to a property.

deed-in-lieu
Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.

deed of trust
Some states, like California , do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.

default
Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.

delinquency
Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

deposit
A sum of money given in advance of a larger amount being expected in the future. Often called in real estate as an "earnest money deposit."

depreciation
A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.

down payment
The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

due-on-sale provision
A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

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earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.

equity
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

escrow account
Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.

estate
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

eviction
The lawful expulsion of an occupant from real property.

eviction crew
Workers who accompany the sheriff on behalf of the lender to assist in the eviction of an occupant from real property. The eviction crew are the workers who will actually move the occupants belongings from the home to the street/yard//driveway/sidewalk and then change the locks to keep the previous occupant from retunring to the home.

examination of title
The report on the title of a property from the public records or an abstract of the title.

exclusive listing
A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

executor
A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix" is the feminine form.

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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 credit record.

fair market value
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.

Fannie Mae (FNMA)
The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. For a discussion of the roles of Fannie Mae, Freddie Mac (FHLMC), and Ginnie Mae (GNMA), see the Library.

Fannie Mae's Community Home Buyer's Program
An income-based community lending model, under which mortgage insurers and Fannie Mae offer flexible underwriting guidelines to increase a low- or moderate-income family's buying power and to decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model are required to attend pre-purchase home-buyer education sessions.

Federal 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.

fee simple
The greatest possible interest a person can have in real estate.

fee simple 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.

FHA mortgage
A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.

firm commitment
A lender's agreement to make a loan to a specific borrower on a specific property.

first mortgage
The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.

fixed-rate mortgage
A mortgage in which the interest rate does not change during the entire term of the loan.

fixture
Personal property that becomes real property when attached in a permanent manner to real estate.

flood insurance
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.

foreclosure
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 mortgage debt.

401(k)/403(b)
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.

401(k)/403(b) loan
Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans. Loans against 401K plans are an acceptable source of down payment for most types of loans.

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government loan (mortgage)
A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.

Government National Mortgage Association (Ginnie Mae)
A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968 , GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA)

grantee
The person to whom an interest in real property is conveyed.

grantor
The person conveying an interest in real property.

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hazard insurance
Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or other hazards.

Home Equity Conversion Mortgage (HECM)
Usually referred to as a reverse annuity mortgage, what makes this type of mortgage unique is that instead of making payments to a lender, the lender makes payments to you. It enables older home owners to convert the equity they have in their homes into cash, usually in the form of monthly payments. Unlike traditional home equity loans, a borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property.

home equity line of credit
A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.

home inspection
A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.

homeowners' association
A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements.

homeowner's insurance
An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

homeowner's warranty
A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage as a condition of the sale, but either party can pay.

HUD median income
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).

HUD-1 settlement statement
A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow (impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban Development (HUD). The HUD1 statement is also known as the "closing statement" or "settlement sheet."

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Improvement
Privately owned structure (building, fence, etc.) on a site to enhance the value of the property.

 

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joint tenancy
A form of ownership or taking title to property which means each party owns the whole property and that ownership is not separate. In the event of the death of one party, the survivor owns the property in its entirety.

judgment
A decision made by a court of law. In judgments that require the repayment of a debt, the court may place a lien against the debtor's real property as collateral for the judgment's creditor.

judicial foreclosure
A type of foreclosure proceeding used in some states that is