A loan that does not meet the standards of, or is too large to be purchased by, FNMA or FHLMC and where the interest rate is at least ½ a percentage point higher than a conforming loan. Example: Nicholas’s monthly income is $10,000; he wants to buy a house that would require monthly principal and interest Payments of $4,000 which is a 40% ratio of his income. Currently, FNMA/FHLMC requires that the house payment be not more than 28% of monthly income. Private lenders, who examined Nicholas’s circumstances and the appraisal in detail, are willing to make the loan. Because it is considered a higher-risk and less liquid investment (it cannot be sold to FNMA or FHLMC) than an FNMA/FHLMC conforming loan, a nonconforming loan is obtained. It requires a higher interest rate and/or more discount points.
A letter sent as a reminder to a borrower who has breached one or more of the loan covenants that may indicate the grace period and any penalties for failing to cure the default.
A document that is recorded and published prior to the sale of a business opportunity in order to give the seller’s creditors notice. Also called notice to creditors of bulk transfer.
A notice provided by law designed to relieve a property owner from the responsibility for the cost of unauthorized work done on the property or materials furnished therefore which must be verified, recorded and posted on the property.
The one to whom a debt is owed.
A presentation of a set of terms that is subject to another party’s acceptance that is essential to arrive at a meeting of the minds needed to result a valid contract.
A presentation of a set of terms made by a potential buyer to a property owner to purchase his or her property
The one who receives an offer.
The one who makes an offer.
