MORTGAGE TERMS DICTIONARY
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Land Contract |
| A real estate installment selling arrangement whereby the buyer may use and occupy land, but no deed is given by seller until the sales price has been paid. |
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Lease with Option to Purchase |
| A lease under which the lessee has the right to purchase the property. The option may run for a portion or for the full length of the lease. |
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Leasehold Estate |
| Tenant's right of possession for a specific period of time under a lease agreement. |
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Legal Description |
Legally acceptable identification of real estate by one of the following:
- the government rectangular survey
- metes and bounds
- recorded plat (lot and block number)
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Lessee |
| A person to whom property is rented under a lease. (Tenant) |
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Lessor |
| A person who rents property to another under a lease. (Landlord) |
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Lien |
A claim against the property for the payment of a debt, judgement, mortgage or taxes.
Example : Unpaid contractors may file a mechanic's lien. |
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Life Estate |
| An estate in real property for the life of a living person. The estate then reverts back to the grantor or to a third party. |
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Lis Pendens |
| Latin for "lawsuit pending." Recorded notice that litigation is pending on a property. Most lenders will require the clearance of the Lis Pendens prior to closing. |
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Loan Application |
| A document required by a lender prior to loan approval. The application includes detailed information about the borrower and the property. |
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Loan origination fee or points |
| Charge by a lender or broker connected with originating a loan. This is different from discount points which are used to buy down the rate of interest. |
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Loan to Value Ratio (LTV) |
| The loan amount divided by the value of the property. |
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Loan Servicing |
| The act of collecting loan payments, handling property tax and insurance escrows, foreclosing on defaulted loans and remitting payments to the investors. |
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