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Abandonment
The situation in which a homeowner leaves a house with no intention to return.
Absolute Auction
Auction with no minimum bid amount. The highest bidder gets the property.
Absolute Net Lease
Also called net-net-net lease that requires payment of all or part of the real estate taxes,
insurance, and other expenses.
Abstract Of Judgment
An abstract is a summary; an abstract of judgment is a summary of a judgment; a judgment is the end result of a
lawsuit. A judgment may run many pages. An abstract of judgment typically runs one or two pages. It just shows
who won the lawsuit, who lost, how much is owed, what court made the decisions, the date of the judgment and
the attorney for the winner of the lawsuit. Once the abstract of judgment is recorded (filed with the county clerk or
county recorder), it creates a general lien on the judgment debtor's property, including the real estate. An abstract
of judgment will be discovered by a title company whenever a landowner tries to sell the land. Most title companies
will demand that it be paid off as a condition of insuring the resale.
Acceleration Clause
Clause in trust deed or mortgage giving a lender the right to call all sums owing him to be immediately due and
payable upon the happening of a certain event.
Acceptance
When the seller's or agent's principal agrees to the terms of the agreement of sale, approves the negotiation on the
part of the agent, and acknowledges receipt of the deposit in subscribing to the agreement of sale, that act is
termed the acceptance.
Accrued Items of Expense
Those incurred expenses that are not yet payable. The seller's accrued expenses are credited to the purchaser in
the closing statement.
Adjustable Rate Mortgage
A loan that has an interest rate that can go up or down at certain intervals, called periods, and within certain limits,
called caps. The loan is secured by a house, on which the lender will foreclose if the loan is not paid.
Alienation
The transferring of property from one person to another.
Alienation Clause
(Accelleration Clause; Due on Sale Clause) A clause that states that upon sale or transfer of certain property, a
loan is immediately due and payable.
All-Inclusive Deed or Trust
(Wrap Around Contract) A form of deed of trust that, in addition to any other amounts actually financed, includes
the amounts of any prior deeds of trust.
Amortization
The repayment of a debt in installments.
Amortization Mortgage
A debt, of which the periodic repayments are used to reduce the principal outstanding as well as paying off the
current interest charges.
Apportionment
The adjustment of the income, expenses, or carrying charges of real estate that are usually computed to the date
of closing of title so that the seller pays all expenses to that date. The buyer assumes all expenses from the data
on which the deed is conveyed to the buyer.
Appraisal
An estimate of a property's value made by an appraiser who is usually presumed to be and expert in this work.
Appraisal by Comparison
An estimate of value by comparing the sale prices of other similar properties.
Appurtenance
Something which is outside the property itself but belongs to the land and adds to its greater enjoyment, such as
a right-of-way or a barn or a dwelling.
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As Is
When a property is sold as is, the seller does not warrant or guarantee that the property is free of defects. The
buyer accepts the property in its present condition, without modification.
Assessed Valuation
A valuation placed upon property by a public officer or a board as a basis for taxation.
Assessment
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such
as a street or sewer.
Assessor
An official who has the responsibility of determining assessed valuation.
Assessors Parcel Number
A number assigned by the county tax assessor to identify a parcel of real property.
Assignment
The method or manner by which a right or contract is transferred from one person (the assignor) to another (the
assignee).
Assignment of Rents
A procedure in which a borrower gives a lender the right to receive the rents collected from a tenant in a house
owned by the borrower.
Assumes and Agrees to Pay
A clause in a deed or related document under which a buyer who takes over old payments on the seller's loan also
agrees to pay the old loan. The buyer will normally receive title and make the payments. The 'assumes and agrees
to pay' language is often found in the consideration section of the deed that transfers title from the seller to a
buyer in such an assumption. A seller may or may not be released from liability, but in either case, the buyer is
responsible legally to make payments on the loan.
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Assumption of Mortgage
Occurs when a person takes title to property and assumes liability for the payment of an existing note or bond
secured by a mortgage against the property.
Auction
The process of selling property at a public sale to the highest bidder. The person conducting the sale will call out
the initial asking price and each price that anyone in the audience bids until no one will bid a higher price. The
auctioneer then calls out "going once, going twice, sold to the highest bidder!"
Automatic Stay
A bankruptcy court order. When bankruptcy is filed, the bankruptcy court will issue a court order that prevents any
creditor from attempting to collect any debt from the person who declared bankruptcy. Creditors, even though they
are owed money, may not undertake foreclosure, repossession, eviction or seizure, or even call or write the debtor
demanding payment. Instead, they must all come to the bankruptcy court and seek the money they are owed
together with the other creditors.
Next Foreclosure Definitions: Balance Owed on the Loan >> Buydown
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