Mortgage and Real Estate Term Glossary – Letters T Through V

T Terms

TAX LIEN – a claim against property for unpaid taxes.

TENANCY IN COMMON – a form of undivided ownership interest by two or more persons that provides for no right of survivorship. The interest need not be equal percentages.

TENANT – one who is not the owner, but occupies real property under consent of the owner, and in subordination to the owner’s title. The tenant is entitled to exclusive possession, use and enjoyment of the property, usually for a time and amount specified in a lease or rental agreement.

TERM – the period of time between the commencement date and termination date of a note, mortgage, deed of trust, legal document or other contract. 30 year fixed rate mortgages have been traditionally the most popular mortgage product in the market.

TITLE – written evidence of the right to or ownership in real property. Title may be acquired through purchase, inheritance, devise, gift, or through foreclosure of a mortgage.

TITLE INSURANCE – a contract by which the insurer agrees to pay the insured a specific amount for any loss caused by defects of title to real estate, wherein the insured has an interest as purchaser, mortgagee or otherwise.

TITLE SEARCH – an examination of public records, laws and court decisions, to ensure that no one except the current owner has a valid claim to the property, and to disclose past and current facts regarding ownership of the subject property.

TOWNHO– USE – a row house on a small lot, which has exterior limits common to other similar units. Title to the unit and its lot is vested in the individual owner with a fractional interest in common areas, if any. works with many lenders who provide home financing for townhouses.

TRUSTEE – one who holds legal title to property for the benefit of another, or to secure performance of a specific obligation.

TRUTH-IN-LENDING ACT (TILA) – the Federal Truth-in-Lending Act (PL. 90-321, 15 USC 1601 et seq.) Part of the Consumer Credit Protection Act of 1965, a Federal law that requires lenders to provide full written disclosure of credit terms and conditions, the finance charges, the annual percentage rate (APR), and other fees and charges incurred in a consumer loan agreement.

U Terms

UNDERWRITING – the process of deciding whether to make a loan based on credit, employment, assets and other factors. CHARACTER – CAPACITY – COLLATERAL – COMMON SENSE.

UNENCUMBERED PROPERTY – a parcel of real property which is free and clear of debt or liens.

UNIFORM COMMERCIAL CODE (UCC) – a comprehensive code of laws regulating important legal aspects of business and financial transactions.

UNIFORM RESIDENTIAL APPRAISAL REPORT (URAR) – The FNMA 1004/FHLMC 65 standard residential form used by real property appraisers to detail facts supporting the value of single-family properties.

UNIMPROVED LAND – raw land, dirt only. Be sure to check with an Loan Advisor on the differences between lot loan financing and raw land loans.

URBAN RENEWAL – the redevelopment or rehabilitation of real property in an urban area.

USURY – the act of charging borrowers a rate of interest greater than that permitted by law.

V Terms

VA (DEPARTMENT OF VETERANS AFFAIRS) MORTGAGE – government insured loans guaranteed by the Department of Veterans Affairs, requiring very low or no down payments and with generous requirements for qualification. They are available only to veterans of the armed services, those currently on active duty or in the reserves, and their spouses.

VACANCY RATE – the ratio between the number of vacant units and the total number of units in a multi-tenant building or development. Often the vacancy rate can affect whether the property is considered “warrantable” or not. works with a number of investors that offer low mortgage rate solutions for both warrantable and non-warrantable properties.

VA FUNDING FEE – a fee the VA charges to guarantee a residential real estate mortgage loan

VA LOAN – mortgage loan made by an approved lender and guaranteed by the Department of Veterans Affairs. VA loans are made to eligible veterans and those currently serving in the military and may have a lower down payment than other type loans. However, today, there are limited 97%-100% mortgage loan financing alternatives without having to go through VA or FHA sources.

VALUATION – the estimation of a property’s price through appraisal.

VERIFICATION OF DEPOSIT (VOD) – a form that requests and secures verifications of amount on deposit at financial institutions.

VERIFICATION OF EMPLOYMENT (VOE) – a form that requests and secures documentation of a mortgage applicant’s work history and/or occupation, to assist in the lender’s credit investigation.

VESTED INTEREST – a legal claim or right to the present or future enjoyment of real property.