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Margin
Percentage point interest added to a pre-determined index to adjust the interest rate usually used in ARM.
Market Value
Price of a property for which able and willing buyers are ready to pay.
Marketable Title
A title that the court considers to be so free from defect that it will enforce its acceptance by a purchaser.
Maturity
Due date of a debt or loan.
Mechanics Lien
A claim made to secure the price of labor done upon and materials furnished for uncompensated improvement.
Metes and Bounds
A term used in describing land by setting forth all the boundary lines together with their uncompensated
improvement.
MGIC
See Mortgage Guaranty Insurance Corporation.
Misrepresentation
Making false statements in the course of a business transaction.
Modification
Refers to Loan Modification.
Moratorium
Temporary suspension of debt repayment.
Mortgage
An instrument in writing, duly executed and delivered, that creates a lien upon real estate as security for the
payment of a specified debt, which is usually in the form of a bond.
Mortgage Broker
An intermediary who acts on behalf of lenders.
Mortgage Commitment
A formal indication, made by a lending institution, that it will grant a mortgage loan on property in a certain
specified amount and on certain specified terms.
Mortgage Company
A company that makes home loans to borrowers. Most mortgage companies sell the loans they have on the
secondary market to loan buyers, but continue to service the loans under contracts, collecting payments from
borrowers and handling trouble with the loan, such as default and foreclosures.
Mortgage Guaranty Insurance Corporation
A major private insurer of mortgage loans in the United States.
Mortgage Instrument
The legal paperwork to create a mortgage.
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Mortgage Insurance
Insurance on a mortgage for the protection of the lender against default by the borrower.
Mortgage Lien
The right of a mortgage lender to force a sale of the mortgaged property if the borrower fails to repay the loan as
agreed.
Mortgage Reduction Certificate
An instrument executed by the mortgagee, setting forth the status of and the balance due on the mortgage as of
the date of the execution of the instrument.
Mortgagee
The lender.
Mortgagees Title Policy
A title insurance policy that will pay off the lender's loss if the title to the mortgaged property fails.
Mortgagor
The borrower.
Motion to Lift Stay
A formal request to a bankruptcy court to dissolve an automatic stay that prevents a lender from foreclosing. Once
the motion is granted, the lender may proceed to foreclose unless the borrower can keep up the payments.
Negative Amortization
Addition of unpaid interest to the principal of the loan increasing the amount of the principal.
Negative Equity
A position in which a borrower owes more on property than the property is worth.
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Net Lease
A commercial tenant pays the rent and also the operating costs, including real estate taxes, insurance, utilities, HVAC, etc.
New Basis
Adjusted cost basis by taking into account your old property when you transfer to a new property.
Nominal Interest Rate
Rates written in the loan agreement.
Nonconforming
Loan that does not conform to the guidelines set forth by Fannie Mae or Freddie Mac.
Non-judicial Foreclosure
Foreclosure on a mortgage without filing a lawsuit or obtaining a court order. Generally such sales occur because
the borrower has signed a document, such as a deed of trust, giving a trustee pre-authorization to sell the real
estate to pay off the debt.
Notary Public
A person authorized to take acknowledgment to certain classes of documents, such as deeds, contracts,
mortgages, and before whom affidavits may be sworn.
Note
The legal document that specifies the terms of the borrower's loan, such as the length of time to repay it, the
interest rate, the monthly payment amounts and provisions to deal with the the borrower's
failure to pay on a timely basis.
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Notice Of Default
Letter sent to a defaulting party as a reminder of the default. It may state a grace period and the penalties for
failing to cure the default.
Notice Of Rescission
A document that is used to cancel a notice of default and declare that the default has been corrected.
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