Archive for September, 2015

Landlord Tenant Terms and Definitions – U V – Accurate Credit Bureau Tenant Check

U

Underwriting
In mortgage lending, the process of determining the risks involved in a particular loan and establishing suitable terms and conditions for the loan.

Uninhabitable
The condition of a rental unit which has such serious problems or defects that the tenant’s health or safety is affected. A rental unit may be uninhabitable if it is not fit for human beings to live in, or if it fails to substantially comply with building and safety code standards that materially affect tenants’ health and safety. (Compare to habitable.)

Unlawful detainer lawsuit
A lawsuit that a landlord must file and win before he or she can evict a tenant (also called an “eviction” lawsuit).

U.S. Department of Housing and Urban Development
A/K/A HUD. The federal agency that enforces the federal fair housing law, which prohibits discrimination based on sex, race, religion, national or ethnic origin, familial status, or mental handicap.

Interest charged in excess of the legal rate established by law.

V

VA Loans
Fixed-rate loans guaranteed by the U.S. Department of Veterans Affairs. They are designed to make housing affordable for eligible U.S. veterans. VA loans are available to veterans, reservists, active-duty personnel, and surviving spouses of veterans with 100% entitlement. Eligible veterans may be able to purchase a home with no down payment, no cash reserve, no application fee, and lower closing costs than other financing options. The maximum VA loan amount is currently $203,000.

Variable Rate Mortgage
See Adjustable Rate Mortgage.

Variable Rate
Interest rate that changes periodically in relation to an index.

Verification of Deposit (VOD)
Document signed by the borrower’s bank or other financial institution verifying the borrower’s account balance and history.

Verification of Employment (VOE)

Document signed by the borrower’s employer verifying the borrower’s position and salary.

For tenant screening and landlord services see Accurate Credit Bureau.

Rental Property Terms and Definitions – T – Landlord Services & Tenant Screening – Accurate Credit Bureau

T

Tax Impound
Money paid to and held by a lender for annual tax payments.

Tax Lien
Claim against a property for unpaid taxes.

Tax Sale
Public sale of property by a government authority as a result of non-payment of taxes.

Tenancy
The tenant’s exclusive right, created by a rental agreement between the landlord and the tenant, to use and possess the landlord’s rental unit.

Tenant
A person who rents or leases a rental unit from a landlord. The tenant obtains the right to the exclusive use and possession of the rental unit during the lease or rental period.

Tenant screening service
A business that collects and sells information on tenants, such as whether they pay their rent on time and whether they have been defendants in unlawful detainer lawsuits.
For tenant screening services see Accurate Credit Bureau.

Term
The period of time between the beginning loan date on the legal documents and the date the entire balance of the loan is due.

Three-day notice
See eviction notice. For eviction reports see Accurate Credit Bureau.

Thirty-day notice
A written notice from a landlord to a tenant telling the tenant that the tenancy will end in 30 days. A thirty-day notice usually does not have to state the landlord’s reason for ending the tenancy.

Title
Document which gives evidence of ownership of a property. Also indicates the rights of ownership and possession of the property.

Title Company
A company that insures title to property.

Title Insurance
Insurance which protects the lender (lender’s policy) or the buyer (owner’s policy) against loss due to disputes over ownership of a property.

Title Search
Examination of municipal records to ensure that the seller is the legal owner of a property and that there are no liens or other claims against the property.

Transfer Tax
Tax paid when title passes from one owner to another.

Truth-in-Lending Act
Federal law requiring written disclosure of the terms of a mortgage (including the APR and other charges) by a lender to a borrower after application. Also requires the right to rescission period.

Property Management Dictionary – Landlord Terms – Accurate Credit Bureau

S

Sales Agreement
Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.

Second Mortgage
An additional mortgage placed on a property that has rights that are subordinate to the first mortgage.

Security deposit
A deposit or a fee that the landlord requires the tenant to pay at the beginning of the tenancy. The landlord can use the security deposit, for example, if the tenant moves out owing rent or leaves the unit damaged or less clean than when the tenant moved in.

Security Settlement Challenge Crusher
A Letter designed to quickly squash any unfounded tenant arguments about deductions made from the security deposit refund.

Security Settlement Statement
An essential landlord form that allows the landlord to make valid, itemized and explained deductions from security deposits.

Serve/service
Legal requirements and procedures that seek to assure that the person to whom a legal notice is directed actually receives it.

Settlement (or Closing)
The settlement or closing is the conclusion of your real estate transaction. It includes the delivery of your security instrument, signing of your legal documents and the disbursement of the funds necessary to the sale of your home or loan transaction (refinance).

Settlement Costs
Also known as closing costs, these costs are for services that must be performed before your loan can be initiated. Examples include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney’s fees, taxes, and surveying fees.

Settlement Cost (HUD guide)
HUD – published booklet that provides an overview of the lending process, and that is given to consumers after completing loan application.

Sixty-day notice
A written notice from a landlord to a tenant telling the tenant that the tenancy will end in 60 days. A sixty-day notice usually does not have to state the landlord’s reason for ending the tenancy.

Sublease
A separate rental agreement between the original tenant and a new tenant to whom the original tenant rents all or part of the rental unit. The new tenant is called a “subtenant.” The agreement between the original tenant and the landlord remains in force, and the original tenant continues to be responsible for paying the rent to the landlord and for other tenant obligations. (Compare to assignment.)

Subpoena
An order from the court that requires the recipient to appear as a witness or provide evidence in a court proceeding.

Subtenant
See sublease.

Survey
A measurement of land, prepared by a licensed surveyor, showing a property’s boundaries, elevations, improvements, and relationship to surrounding tracts.

Sweat Equity
Value added to a property in the form of labor or services of the owner rather than cash.

Rental Property Definitions and Landlord Terms – Q R – Accurate Credit Bureau

Q No Q terms.

R

Real Property
Land and any improvements permanently affixed to it, such as buildings.

Reconveyance
The transfer of property back to the owner when a mortgage loan is fully repaid.

Recording
The act of entering documents concerning title to a property into the public records.

Recording Fee
Money paid to an agent for entering the sale of a property into the public records.

Refinancing
The process of paying off one loan with the proceeds from a new loan secured by the same property.

RESPA
Real Estate Settlement Procedures Act. RESPA is a federal law that gives consumers the right to review information about loan settlement costs. The law gives you the right to review this information after you apply for a loan, and again at loan settlement. The law only obliges lenders to provide these settlement costs after application.

Relief from forfeiture
An order by a court in an unlawful detainer (eviction) lawsuit that allows the losing tenant to remain in the rental unit, based on the tenant’s convincing the court that the eviction would cause the tenant severe hardship and that the tenant can pay all of the rent that is due, or to otherwise fully comply with the lease.
Rent control ordinances
Laws in some communities that limit or prohibit rent increases, or that limit the circumstances in which a tenant can be evicted.

Rent withholding
The tenant’s remedy of not paying some or all of the rent if the landlord does not fix defects that make the rental unit uninhabitable within a reasonable time after the landlord receives notice of the defects from the tenant. (More often than not, this is a lease violation as the rental unit is not always uninhabitable.)

Rental agreement
An oral or written agreement between a tenant and a landlord, made before the tenant moves in, which establishes the terms of the tenancy, such as the amount of the rent and when it is due. See lease and periodic rental agreement. See The Accurate Credit Bureau Rental agreement and The Accurate Credit Bureau Lease for maximum landlord protection.

Rental application form
A form that a landlord may ask a tenant to fill out prior to renting that requests information about the tenant, such as the tenant’s address, telephone number, employment history, credit references, and the like. See The Accurate Credit Bureau Rental Application for maximum landlord protection.

Rental period or rent period

The length of time between rental payments; for example, a week or a month.

Rental unit
An apartment, house, duplex, or condominium that a landlord rents to a tenant to live in.

Renter’s insurance
Insurance protecting the tenant against property losses, such as losses from theft or fire. This insurance usually also protects the tenant against liability (legal responsibility) for claims or lawsuits filed by the landlord or by others alleging that the tenant negligently injured another person or property.

Repair and deduct remedy
The tenant’s remedy of deducting from future rent the amount necessary to repair defects covered by the implied warranty of habitability. The amount deducted cannot be more than one month’s rent. (When the implied warranty of habitability is misinterpreted, this is often construed as “withholding of rent, a lease violation in many cases.)

Retaliatory eviction or action
An act by a landlord, such as raising a tenant’s rent, seeking to evict a tenant, or otherwise punishing a tenant because the tenant has used the repair and deduct remedy or the rent withholding remedy, or has asserted other tenant rights.

Right to Rescission
Under the provisions of the Truth-in-Lending Act, the borrower’s right, on certain kinds of loans, to cancel the loan within three days of signing a mortgage.

For Tenant Screening free Rental Applications and Rental Agreements see Accurate Credit Bureau.

Tenant Screening Terms and Definitions for Landlords – LMNOP – Accurate Credit Bureau

L

Landlord
A business or person who owns a rental unit, and who rents or leases the rental unit to another person, called a tenant.

Late Charge
Penalty paid by a borrower when a payment is made after the due date.

Lease
A rental agreement, usually in writing, that establishes all the terms of the agreement and that lasts for a predetermined length of time (for example, six months or one year). For landlord protection, see Accurate Credit Bureau’s Rental Lease

Legal aid organizations
Organizations that provide free legal advice, representation, and other legal services in noncriminal cases to economically disadvantaged persons.

Lender
The bank, mortgage company, or mortgage broker offering the loan.

Lien
A legal claim by one person on the property of another for security for payment of a debt.

Loan Application
An initial statement of personal and financial information required to apply for a loan.

Loan Application Fee
Fee charged by a lender to cover the initial costs of processing a loan application. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.

Loan Origination Fee
Fee charged by a lender to cover administrative costs of processing a loan.

Loan-to-Value Ratio (LTV)
The percentage of the loan amount to the appraised value (or the sales price, whichever is less) of the property.

Lock or Lock-In
A lender’s guarantee of an interest rate for a set period of time. The time period is usually that between loan application approval and loan closing. The lock-in protects you against rate increases during that time.

Lock out
When a landlord locks a tenant out of the rental unit with the intent of terminating the tenancy. Lockouts, and all other self-help eviction remedies, are illegal. (Also, when tenants locks themselves out of the rental unit and requires the landlord or a locksmith to allow them back into the unit.)

M

Margin
A specified percentage that is added to your chosen financial index to determine your new interest rate at the time of adjustment for ARM loans.

Mediation

A process in which a neutral third person meets with the parties to a dispute in order to assist them in formulating a voluntary solution to the dispute.

Mortgage

A legal document by which real property is pledged as security for the repayment of a loan.

Mortgage Banker
An individual or company that originates and/or services mortgage loans.

Mortgage Broker
An individual or company that arranges financing for borrowers.

Mortgage Insurance
Insurance to protect the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home’s appraised value. (Note, however, that FHA and VA loans have different insurance guidelines.)

Mortgage Loan
A loan for which real estate serves as collateral to provide for repayment in case of default.

Mortgage Note
Legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a mortgage or deed of trust or other security instrument.

Mortgagee
The lender in a mortgage loan transaction.

Mortgagor
The borrower in a mortgage loan transaction.

N

Negative Amortization
A loan payment schedule in which the outstanding principal balance of a loan goes up rather than down because the payments do not cover the full amount of interest due. The monthly shortfall in payment is added to the unpaid principal balance of the loan.

Negligence/negligently
A person’s carelessness (that is, failure to use ordinary or reasonable care) that results in injury to another person or damage to another person’s property.

Non-Assumption Clause
A statement in a mortgage contract forbidding the assumption of the mortgage by another borrower without the prior approval of the lender.

Note
Legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a mortgage or deed of trust or other security instrument.

Notice of Default
Written notice to a borrower that a default has occurred and that legal action may be taken.

O

Origination Fee
Fee charged by a lender to cover administrative costs of processing a loan.

P

Payment Cap

Consumer safeguards which limit the amount monthly payments on an adjustable-rate mortgage may change. Since they do not limit the amount of interest the lender is earning, they may cause negative amortization.

Per Diem Interest

Interest calculated per day. (Depending on the day of the month on which closing takes place, you will have to pay interest from the date of closing to the end of the month. Your first mortgage payment will probably be due the first day of the following month.)

PITI
Abbreviation for Principal, Interest, Taxes and Insurance, the components of a monthly mortgage payment.

Points (or Discount Points)

Points are an up-front fee paid to the lender at the time that you get your loan. Each point equals one percent of your total loan amount. Points and interest rates are inherently connected: in general, the more points you pay, the lower the interest rate you get. However, the more points you pay, the more cash you need up front since points are paid in cash at closing.

Power of Attorney

Legal document authorizing one person to act on behalf of another.

Pre-approval
The process of determining how much money a prospective homebuyer or refinancer will be eligible to borrow prior to application for a loan. A pre-approval includes a preliminary screening of a borrower’s credit history. Information submitted during pre-approval is subject to verification at application.

Prejudgment Claim of Right to Possession
A form that a landlord in an unlawful detainer (eviction) lawsuit can have served along with the summons and complaint on all persons living in the rental unit who might claim to be tenants, but whose names the landlord does not know. Occupants who are not named in the unlawful detainer complaint, but who claim a right to possess the rental unit, can fill out and file this form to become parties to the unlawful detainer action

Prepaid Expenses
Taxes, insurance and assessments paid in advance of their due dates. These expenses are included at closing.

Prepaid Interest
Interest that is paid in advance of when it is due. Typically charged to a borrower at closing to cover interest on the loan between the closing date and the first payment date.

Prepayment
Full or partial repayment of the principal before the contractual due date.

Prepayment Penalty
Fee charged by a lender for a loan paid off in advance of the contractual due date.

Pre-qualification
The process of determining how much money a prospective homebuyer will be eligible to borrow prior to application for a loan. Information submitted during pre-qualification is subject to verification at application.

Principal
The amount of debt, not counting interest, left on a loan.

Private Mortgage Insurance (PMI)
Insurance to protect the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home’s purchase price. (Note, however, that FHA and VA loans have different insurance guidelines.)

Purchase Agreement
Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.

Landlord Terms and Definitions – J – K – Accurate Credit Bureau – Tenant Screening

J

Joint Liability
Liability shared among two or more people, each of whom is liable for the full debt.

Joint Tenancy
A form of ownership of property giving each person equal interest in the property, including rights of survivorship.

Jumbo Loan
A mortgage larger than the $240,000 limit set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

Junior Mortgage
A mortgage subordinate to the claim of a prior lien or mortgage. In the case of a foreclosure, a senior mortgage or lien will be paid first.

K

No K terms.

Landlord Tenant Terms and Definitions – I – Accurate Credit Bureau

I

Implied warranty of habitability
A legal rule that requires landlords to maintain their rental units in a condition fit for human beings to live in. A rental unit must substantially comply with building and housing code standards that materially affect tenants’ health and safety. The basic minimum requirements for a rental unit to be habitable are listed in the Dealing With Problems section.

Impound Account
An account held by the lender to which the borrower pays monthly installments, collected as part of the monthly mortgage payment, for annual expenses such as taxes and insurance. The lender disburses impound account funds on behalf of the borrower when they become due. (Also known as Escrow Account.)

Index
A published rate used by lenders that serves as the basis for determining interest rate changes on ARM loans.

Initial inspection
An inspection by the landlord before the tenancy ends to identify defective conditions that justify deductions from the security deposit. The landlord must perform an initial inspection if the tenant requests it.
Initial Rate
The rate charged during the first interval of an ARM loan.

Interest
Charge paid for borrowing money, calculated as a percentage of the remaining balance of the amount borrowed.

Interest Rate
The annual rate of interest on the loan, expressed as a percentage of 100.

Interest Rate Cap
Consumer safeguards which limit the amount the interest rate on an ARM loan can change in an adjustment interval and/or over the life of the loan. For example, if your per-period cap is 1% and your current rate is 7%, then your newly adjusted rate must fall between 6% and 8% regardless of actual changes in the index.

Item of information
Information in a credit report that causes a creditor to deny credit or take other adverse action against an applicant (such as refusing to rent a rental unit to the applicant) does not effect their credit score.

For Tenant Screening Landlord Services and Free Rental Applications and Rental Agreements see Accurate Credit Bureau