All of "B"

Question 1

Balance Sheet

Answer 1

A statement of the assets, liabilities and capital. (Balance of income)

Question 2

Balloon Mortgage

Answer 2

A loan that requires payments for a specified time where the borrower pays off the full balance in a lump sum. (If under HOEPA, minimum is 5 years)

Question 3

Balloon Payment

Answer 3

A larger than usual one time payment at the end of the loan. (Where you can owe a big amount at the end of the loan)

Question 4

Bait and Switch

Answer 4

The action (generally illegal) of advertising goods which are an apparent bargain, with the intention of substituting inferior or more expensive goods.

Question 5

Basis Point

Answer 5

Used to calculate the interest rate in real estate transaction. (Describes % change in the value)(1 basis point is equal to 1/100th of 1% or 0.01%)

Question 6

Bankruptcy

Answer 6

When a debtor obtains financial relief. (cannot afford to pay off any payments)

Question 7

Blanket Mortgage

Answer 7

A single mortgage that covers multiple properties, with the group of assets serving as collateral for the loan. (Real estate developers and larger investors often purchase more than one property at a time, so a blanket mortgage allows them to simplify those transactions with one loan)

Question 8

Bona Fide

Answer 8

Made in good faith without fraud. (Genuine, real intentions)

Question 9

Bona-Fide Nonprofit Organization

Answer 9

Any organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time

Question 10

Borrower(Mortgagor)

Answer 10

Someone who mortgages property

Question 11

Borrowers Signature Authorization

Answer 11

A form signed by the applicant to authorize the info from the third party for the mortgage loan.

Question 12

Bridge Loan

Answer 12

A short-term loan that uses the borrowers equity to make a downpayment on a new home. (Used to bridge the gap between buying a home and selling your previous one)

Question 13

Building Code

Answer 13

A law or regulation setting standards for construction, maintenance,occupancy or appearance of buildings/units

Question 14

Buy-Down

Answer 14

Money paid by the buyer of a house to reduce the mortgage interest payments. (A way to obtain a lower interest rate by paying discount points at closing)

Question 15

Buy-Down Account for Temporary Buy-Downs

Answer 15

When a portion is released each month to reduce the borrowers payments. (Interest rate is reduced)

Question 16

Buyers Broker/Agent

Answer 16

A broker that acts as the agent who represents the buyer of a property. (The broker is responsible for the buyers interest and trying to get the best price on the deal)

Question 17

Buyers Market

Answer 17

A market in which supply exceeds demand, resulting in lower prices. (There are plenty of homes for sale, but there’s a shortage of interested buyers)