Balloon Loan
Mortgage in which the remaining principal balance becomes fully due and payable at a predetermined time. Most of the time, balloon loans have level payments until the note becomes due and payable.
The final payment of a mortgage which is larger than the regular payment; it usually extinguishes the debt.
Identifies whether a borrowing entity has filed for bankruptcy in the past. Court proceedings to relieve the debts of an individual or business unable to pay its creditors. An individual, firm, or corporation who, through a court proceeding, is relieved from the payment of all debts. Bankruptcy may be declared under one of several chapters of the federal bankruptcy code.
Base Month
The month in which the instrument begins; in a lease, base month is the month in which the lease starts. In a mortgage note, base month is the month in which the mortgage note is executed.
Base Rent
The minimum stipulated rental rate in a lease agreement before adjustments for lease concessions (if any); also the minimum fixed guaranteed rent in a commercial property lease; separate from any overages or additional rental fees.
Base Year
The year in which the instrument begins; in a lease, base year is the year in which the lease starts. In a mortgage note, base year is the year in which the mortgage note is executed.
Original cost of property plus value of any improvements put on by the seller minus the depreciation taken by the seller.
Below Average
Refers to an inferior overall appearance and marketability of the property as it relates to other comparable properties in the market or submarket; factors include actual and effective age, structural and aesthetic appeal, physical condition, functional utility, etc.
The lender named on the mortgage note. One entitled to the proceeds of property held in trust; also proceeds of wills, insurance policies, or trusts.
Bill of Sale
Written agreement transferring personal property from one person to another.
Preliminary agreement of sale, usually accompanied by earnest money (term also used with property insurance).
Blanket Loan
A blanket loan, or blanket mortgage, is a mortgage client securing several parcels of property, frequently used by developers who have purchased a single tract of land intending to subdivide into individual parcels. The developer normally requires a "partial release" clause so that individual parcels can be released from the blanket mortgage as they are sold.
A mortgage covering more than one property of the mortgage.
A debt instrument in the capital markets. The US government, corporations and municipalities use bonds to raise money. Bonds can also be backed by real estate loans and the payments from mortgages.
Borrower Affiliated
Identifies whether the tenant is affiliated or related to the borrower. Often, the rental rate per square foot (or unit) paid the borrower-affiliated tenants may be less than or greater than market rent; in which case, an underwriter might consider increasing or decreasing the underwritten rent to normalize the income generated by the tenant (also referred to as "mark to market").
Borrower Name
The name of the borrower/sponsor.
Borrower Net Worth
The value of all assets, including cash, less total liabilities. For underwriting purposes, this is used as a guideline to indicate creditworthiness and financial strength. The net worth of a business is represented by the amount that its assets exceed liabilities.
Borrower Type
The legal structure of the borrower/sponsor; options include Individual, Corporation, Limited Liability Company (LLC), Trust, Limited or General Partnership, or Other.
A form of interim loan generally made between a short term loan and a long term loan when the borrower needs additional time before obtaining permanent financing.
Short-term mortgage financing that is in place between the termination of one loan and the beginning of another loan. Also, a form of interim loan, generally made between a short term loan and a permanent (long term) loan, when the borrower needs to have more time before taking the long term financing.
A person that represents another for a fee in real estate transactions. Real Estate brokers help consumers locate suitable real estate and are paid a fee for their services.
(see Agent)
Building Appearance and Marketability
The overall appearance and marketability as it relates to typical market standards. In LoanSizer, options include below average, average, or above average.
Building Area
The sum of areas at each floor level, including basements, mezzanines and penthouses included within the principal outside faces of the exterior walls and neglecting architectural setbacks or projections. Also know as GBA, gross building area. This figure will determine the insurance for the property.
Building Code
Government regulations specifying minimum construction standards.
Building Line or Setback
Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leased, by building codes, or by zoning ordinances.
Building Type
Determines the primary building type; options include Office, Multifamily, Mobile Home Park, Retail, Industrial, Healthcare, Self Storage, Hotel, and Mixed Use.
An interest rate buy down is the temporary reduction of the note rate and resulting monthly payments a borrower pays to the lender. The shortfall between the rate on the note and initial payment made by the borrower is usually paid by a third party such as a seller or builder.
Agent who takes the buyer as a client, and is obligated to represent their interest above all others, and owes specific fiduciary duties to the buyer.