lien: A claim by one person on the property of another as security for money owed. Such claims may include obligations not met or satisfied, judgments, unpaid taxes, or for materials or labor. (See also Special Lien.)
liquidation: The process by which a company or part of a company is brought to an end, and the assets and property are redistributed.
liquidation bankruptcy: A condition in which the debtor’s nonexempt or legally unprotected assets are sold off in order to satisfy creditor claims.
loan-to-value ratio: The loan amount expressed as a percent of either the purchase price or the appraised value of the property. For example, if a buyer makes a 15 percent cash down payment on a property, the laon-to-value (LTV) is 85 percent.
lock: Also called a "rate lock," a lock is a commitment by a lender to guarantee a specific interest rate if a mortgage closes within a set period of time (usually 30, 45 or 60 days), After this period, the guaranteed rate expires.
lock-in: A guarantee, for which a fee is generally charged, that a specific rate will be received when the mortgage is closed.
market value: The price that a home will likely fetch on the market, based on comparisons to similar homes that have recently sold.
marketable title: A title free and clear of objectionable items, clouds, or other defects, that will be accepted without objection.
mortgage calculator: A program used to help homebuyers determine the monthly payment on a mortgage using principal, interest rate, and term as the variables.
mortgage insurance premium: The payment made by a borrower to the lender for transmittal to HUD to help defray the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one half of one percent paid by the mortgagor on a monthly basis.
mortgage note: A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for payment.
mortgagee: The lender in a mortgage agreement.
mortgagor: The borrower in the mortgage agreement.
new bankruptcy law: A colloquial reference to the Bankruptcy Abuse Prevention and Consumer Protection Act.
outside agency payment plans: The use of third-party businesses used by the debtor to settle debt, usually with payment plans.
About Us