Glossary of Terms
Mortgage. Real Estate & Insurance
- Valuation Condition (VC)
- Exception placed by the Valuation Department on an appraisal.
- Vendor's Lien
- Unpaid seller's right to a prior lien on property until the purchase price has been recovered.
- Verification of Employment (VOE)
- Documentation of a mortgage applicant's work history and/or occupation that is intended to assist with the lender's credit investigation and decision process. Many lending institutions ask potential borrowers to sign employment verification forms and then under the applicant's signature, make direct inquires to employers about the applicant.
- Names of the borrowers and the manner in which they hold legal title to the property. May include marital status. See also LEGAL TITLE.
- Veterans Administration (VA)
Independent agency of the federal government created in 1930. The Servicemen's Readjustment Act of 1944 authorized the agency to administer a variety of benefit programs designed to facilitate the adjustment of returning veterans to civilian life. The VA home loan guaranty program is designed to encourage lenders to offer long-term, low-down-payment mortgages to eligible veterans by guaranteeing the lender against loss.
- VOLUNTARY LIEN
- A secured financial interest in a property that is created by agreement between a creditor and the borrower. Basically, the borrower is agreeing to use the property as collateral for the loan. The most common example of a voluntary lien is the one created by a mortgage given for a home loan. See also LIEN.
- Voluntary Conveyance
- Voluntary transfer of title to the real estate security on a defaulted mortgage by deed from the borrower to the lender as an alternative to foreclosure. By arrangement between the parties, the lender saves the expense of foreclosure and the borrower receives credit for payment of the debt in full.