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Balance Owed on the Loan
The part of the original loan that remains unpaid by the borrower at a given point in time.
Balloon Payment
A final installment payment, larger than previous installments that pays off a debt.
Bankruptcy
An action filed in a federal bankruptcy court that allows a creditor to reorganize or discharge credit obligations due
to insolvency. A property owner may restrain foreclosure action by filing bankruptcy.
Bearer
Lender in whose hands the promissory note remains until it is paid in full.
Beneficiary
(1) One entitled to the benefit of a trust: (2) One who receives profit from an estate, the title of which is vested in a
trustee: (3) The lender on a security of a note and deed of trust.
Beneficiaries Statement
("Benny Statement") A written statement of the conditions and remaining balance of a loan secured by a deed of
trust.
Bill of Complaint
The initial paperwork filed in many states to begin a foreclosure. It is part of the process of filing a lawsuit.
Bill of Sale
A document by which title to personal property is passed from seller to buyer.
Bond
A set sum of money or assets that are available if needed to pay to a court or other named person upon a certain
event.
Bridge Loan
A temporary loan to finance a new purchase of a real estate property until another owned property is sold.
Broker
An independent agent between the lender and the borrower or between the buyer and the seller of a real estate property.
Many states require that real estate agents work under a real estate broker.
Broker Price Opinion
A real estate broker's estimate of the price for which property can reasonably be sold. The broker price opinion is
often much cheaper than a professional appraisal, but often just as good, or even more useful because it tells the
owner at what price the property can successfully be marketed.
Buydown
An arrangement in which the seller of real estate pay some or all of the buyer's loan costs, usually measured by
increments of 1 percent of the loan called points. The seller pays enough points to the lender to permit it to offer
the buyer's loan at a reduced interest rate, which reduces the monthly payment. The cost to the seller is small,
but the reduction in payments to the buyer is often quite substantial. Buy down arrangements are often structured
to focus the entire reduction in interest rate, and therefore monthly payments, in the early years of the loan.
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In a 3-2-1 buy down, a seller will pay enough points to reduce the buyer's interest rate by 3 percent, such as from 10
percent to 7 percent, the first year, then by 2 percent the second year and by 1 percent the third year. In the fourth
year the loan interest rate and the monthly payments would return to the normal market rate of interest as set
when the loan was first obtained.
Next Foreclosure Definitions: Capital Gain >> Current Value
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