Mortgage Payment

      You may have one, but do you really know what it is?

Mortgages, Lien Theory
& Title Theory

             A mortgage is a voluntary lien on property.  If you are the buyer or borrower on the property, you will be the mortgagor. The lender is referred to as the mortgagee. In a title theory state the borrower gives the legal title to designated individual specified by the mortgagee, yet retains equitable title.  What this equitable title basically means; when you meet the demands of the mortgage (such as full payment to the lender), the borrower is entitled to legal title.  So, in theory, until the debt is paid, the lender essentially owns the property, while allowing the mortgagor possession and use of the property.  Because the lender has legal title to the property, they have the right to immediate possession of the property or its revenues, should the borrower default.
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Purchasing your home,
fees and options for home buyers in today's real estate market

          In spite of the doom and gloom mortgage headlines, there are still programs out there for first time buyers with little funds for a down payment.  Oregon, for example, has a program for first time buyers, who meet specified criteria, where the state will kick in the 3% for an FHA loan, allowing qualify buyers to purchase a home with little or no down.  Of course, there are certain guidelines on how long the buyers must stay in the property.

           Yet, even with such programs, the first time buyer needs to understand there are certain expenses they may need to pay up front, even when a lender tells them they can get into a property with no down payment.  Click here for the rest of the article.

Real Estate Glossary A's

Abstract of Title
This is the condensed history of ownership of a parcel of real estate, beginning with a synopsis of the original grant, then all the conveyances and encumbrances affecting the property, with a certificate by the abstractor verifying the accuracy and comprehensiveness of the history.
 
Acceleration Clause
This is a clause that allows an entire debt to be due immediately, should the borrower default in some specified manner.
 
Accretion
The increase of a section of land by the natural deposits of soil from a river, lake or the sea.
 
Accrued Items
Expenses that have incurred, yet are not yet payable, that appear on a closing statement.  This might include property tax or mortgage interest.
 
Adjustable Rate Mortgage (ARM)
Loan with a fluctuating interest rate, which is normally tied to the cost-of-funds index of a bank or savings and loan.
 
Adverse Possession
This is the open, actual, hostile, notorious, and continuous possession of someone else’s land, under a claim of title. This can be a way of acquiring title.
 
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