Glossary of Terms
Mortgage. Real Estate & Insurance
- BACK-TO-BACK ESCROW
- Escrow set up to take care of the simultaneous purchase of one property and the sale of another property by the same party.
- BALLOON PAYMENT
- Remaining balance of a mortgage that must be paid in a lump sum either at the end of the mortgage term or at the end of a specified earlier period. The amount may represent slightly more than a monthly payment or may be substantial. It occurs because the fixed installment did not fully amortize the mortgage, either accidentally or intentionally.
So, it is a large payment due at the end of a loan contract. Equal to the remaining principal balance plus any interest and charges due.
- BENEFICIARY'S DEMAND
- Written instructions by a beneficiary under a deed of trust or mortgage stating and demanding the amount necessary for payoff of a lien in full.
- BORROWER SAVINGS
- The monthly savings a customer will experience by consolidating/paying off debt with a debt consolidation loan. Monthly savings equals current monthly payments less new monthly payments.
- Board Approval
- Board Approval is a condition in the bylaws of a co-operative requiring that the seller obtain approval from the Board of Directors as a prerequisite to transferring the shares or, in the case of a condominium, obtaining a waiver of the right of first refusal.
- Building Codes
- Building Codes are regulations established by the state or city government stating fully the structural requirements for a building.
- By-Laws are the rules by which the co-operative corporation and condominium association operates.
- BUILDING PERMIT
- Written permission by a local government for the construction of a new building or for making improvements.
- BUSINESS LICENSE
- A license that authorizes a business to operate and is typically required and issued by the city in which the business is located.
- BUSINESS INTERRUPTION INSURANCE
- Compensation to a business owner or operator for income lost when the business is closed due to a fire or other insured hazard.