Real Estate Glossary - Meanings, Terms, & Acronyms
BACK ON MARKET (BOM) When a property or listing is placed back on the market after being removed from the market recently.
BACK-UP AGENT A licensed agent who works with clients when their agent is unavailable.
BALLOON MORTGAGE A type of mortgage that is generally paid over a short period of time, but is amortized over a longer period of time. The borrower typically pays a combination of principal and interest. At the end of the loan term, the entire unpaid balance must be repaid. 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 two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.
A person, firm or corporation who, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court appointed trustee, for the protection of creditors. Bankruptcy may be declared under one of several chapters of the Federal bankruptcy code:
Chapter 7, which covers individual or business bankruptcy liquidation;
Chapter 11, which covers reorganization of bankrupt businesses;
Chapter 12, which covers certain farm bankruptcies; and
Chapter 13, which covers workouts of debts by individuals in which a debtor retains possession of property while making payments to creditors under a court‐ approved plan
BANKRUPTCY DISCHARGE Legal petition releasing the debtor from all dischargeable debts. BANKRUPTCY DISMISSAL Legal order as a result of a motion filed by either the debtor or another interested party seeking to dismiss the bankruptcy case. BACK-UP OFFER When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property. BASE FILE A title file that includes all previous title search information on a particular property. BENEFICIARY One who benefits from a trust, or the mortgagee under a deed of trust.
BILL OF SALE Transfers title to personal property in a transaction. Board of REALTORS® (local): An association of REALTORS® in a specific geographic area. BIWEEKLY MORTGAGE A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage. BORROWER A person (also known as”the mortgagor”) who receives funds in the form of a loan with an obligation to repay principal balance with interest. BORROWER PAID MORTGAGE INSURANCE (BPMI) Insurance in which the cost of the mortgage insurance is added to the monthly mortgage payment. Borrowers have the right to request a cancellation of BPMI when the loan-to-value ratio reaches 80% of the original value. When the loan-to-value ratio reaches 78% of the original value, BPMI will be automatically terminated. BREAK-EVEN POINT The point at which a revenue or gain is equal to total expenses. BROKER A state licensed individual who acts as the agent for the seller or buyer. Broker of record: The person registered with his or her state licensing authority as the managing broker of a specific real estate sales office. BROKER’S MARKET ANALYSIS (BMA) The real estate broker’s opinion of the expected final net sale price, determined after acquisition of the property by the third-party company.
BROKER PRICE OPINION (BPO) OR BROKER OPINION OF VALUE (BOV) Used to estimate value of a property based upon a comparison to other similar properties recently sold. Also known as comparative market analysis (CMA).
BROKER’S TOUR A preset time and day when real estate sales agents can view listings by multiple brokerages in the market.
BUYER The purchaser of a property. BUYER AGENCY A real estate broker retained by the buyer who has a fiduciary duty to the buyer. Buyer agent: The agent who shows the buyer’s property, negotiates the contract or offer for the buyer, and works with the buyer to close the transaction. BUYDOWN Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.
