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VWXYZbalance sheet
A financial statement that shows assets, liabilities, and net worth as of a
specific date.
balloon mortgage
A mortgage that has level monthly payments that will amortize it over a stated
term but that provides for a lump sum payment to be due at the end of an earlier
specified term.
balloon payment
The final lump sum payment that is made at the maturity date of a balloon
mortgage.
bankrupt
A person, firm, or corporation that, through a court proceeding, is relieved
from the payment of all debts after the surrender of all assets to a
court-appointed trustee.
bankruptcy
A proceeding in a federal court in which a debtor who owes more than his or her
assets can relieve the debts by transferring his or her assets to a trustee.
before-tax income
Income before taxes are deducted.
beneficiary
The person designated to receive the income from a trust, estate, or a deed of
trust.
bequeath
To transfer personal property through a will.
betterment
An improvement that increases property value as distinguished from repairs or
replacements that simply maintain value.
bill of sale
A written document that transfers title to personal property.
binder
A preliminary agreement, secured by the payment of an earnest money deposit,
under which a buyer offers to purchase real estate.
biweekly payment mortgage
A mortgage that requires payments to reduce the debt every two weeks (instead of
the standard monthly payment schedule). The 26 (or possibly 27) biweekly
payments are each equal to one-half of the monthly payment that would be
required if the loan were a standard 30-year fixed-rate mortgage, and they are
usually drafted from the borrower’s bank account. The result for the borrower is
a substantial savings in interest.
blanket insurance policy
A single policy that covers more than one piece of property (or more than one
person).
blanket mortgage
The mortgage that is secured by a cooperative project, as opposed to the share
loans on individual units within the project.
blockbusting
A practice used mostly by real estate agents and developers to encourage white
property owners to sell by giving the impression that black people are moving in
to the neighborhood.
bona fide
In good faith, without fraud.
bond
An interest-bearing certificate of debt with a maturity date. An obligation of a
government or business corporation. A real estate bond is a written obligation
usually secured by a mortgage or a deed of trust.
breach
A violation of any legal obligation.
bridge loan
A form of second trust that is collateralized by the borrower's present home
(which is usually for sale) in a manner that allows the proceeds to be used for
closing on a new house before the present home is sold. Also known as "swing
loan."
broker
A person who, for a commission or a fee, brings parties together and assists in
negotiating contracts between them. See mortgage broker.
budget
A detailed plan of income and expenses expected over a certain period of time. A
budget can provide guidelines for managing future investments and expenses.
budget category
A category of income or expense data that you can use in a budget. You can also
define your own budget categories and add them to some or all of the budgets you
create. "Rent" is an example of an expense category. "Salary" is a typical
income category.
building code
Local regulations that control design, construction, and materials used in
construction. Building codes are based on safety and health standards.
bundle
of rights
A term used to explain the complexities of property ownership.
buydown account
An account in which funds are held so that they can be applied as part of the
monthly mortgage payment as each payment comes due during the period that an
interest rate buydown plan is in effect.
buydown mortgage
A temporary buydown is a mortgage on which an initial lump sum payment is made
by any party to reduce a borrower’s monthly payments during the first few years
of a mortgage. A permanent buydown reduces the interest rate over the entire
life of a mortgage.
buyer's
agent
the practice of Real Estate Brokers or Realtors representing a Home buyer
in a real estate transaction rather than, by default, representing the seller.