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One Action Rule
A rule of law, used heavily in California, that forces a lender to bring only one court action or proceeding against a
borrower in a foreclosure. The one action rule makes it difficult for a lender to obtain a deficiency judgment against
a borrower.
Open Listing
Selling a property through multiple brokers with no exclusive right to list and sell the real estate property.
Open Mortgage
A mortgage that has matured or is overdue and, therefore, is "open" to foreclosure at any time.
Origination
Creation of a loan.
Origination Fee
Application fee (one percent, in general) for processing (originating and closing) a loan.
Out-Of-Court Foreclosure
The same as Non-Judicial Foreclosure.
Owner-Occupied
The borrower who owns the home lives in it.
Partial Payments
Payments that are less than the full payment the borrower owes on a loan.
Performance Bond
A bond used to guarantee the specific completion of an endeavor in accordance with a contract.
Plat Book
A public record containing maps of land showing the division into streets, blocks, and lots and indicating the
measurements of the individual parcels.
PMI
Private Mortgage Insurance.
PMI-Assisted Presale
An arrangement in which a private mortgage insurance company pay for part of the loss that occurs when a house
with negative equity (one worth less than the balance on the existing mortgage loan) is sold by regular means prior
to a foreclosure.
Points
Discount charges imposed by lenders to raise the yields on their loans.
Positive Equity
The situation in which a house has a value in excess of what is due on the mortgage.
Posting
The act of placing a legal notice, such as a notice specifying the date, time and place of a foreclosure sale, on
public display in the proper place for such notices.
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Power Of Attorney
A written instrument (document) duly signed and executed by an owner of property that authorizes an agent to act
on behalf of the owner.
Power Of Sale Clause
The clause in a deed of trust or mortgage, by which the borrower pre-authorizes the sale of a house to pay off the
balance on a loan in the event of the borrower's default. Usually a trustee conducts the sale, although in some
states the sheriff or constable does this.
Prepaids
The costs of purchasing a house that the buyer must pay at the time of closing to a party other than the seller.
Prepayment Clause
A clause in a mortgage that gives a mortgagor the privilege of paying the mortgage indebtedness before it
becomes due.
Primary Lender
The lender that deals directly with the borrower.
Principal
The amount of the loan, excluding interest.
Promissory Note
Legal document stating debt and its terms with or without a lien.
Property Condition
The physical state of the property.
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Prorations
Allocation of closing costs and credits to buyers and sellers.
Purchase Money Mortgage
A mortgage given by a grantee in part payment of the purchase price of real estate.
Qualifying
The process a lender undertakes prior to agreeing to make a loan, which consists of evaluating a buyer's income
and credit and the property's physical condition, and comparing the figures with the lender's guidelines. If the
guidelines are met or exceeded, then the lender will approve a mortgage loan.
Quiet Title Suit
A suit in court to ascertain the legal rights of an owner to a certain parcel of real property.
Quitclaim Deed
A deed that conveys simply the grantor's rights or interest in real estate; generally considered inadequate except
when interests are being passed from one spouse to the other.
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