Real Estate Glossary B
(Back Taxes to Beneficiary Statement)
Back Taxes
Taxes owed from a prior year.
Back-end Fees
Commission received by a syndicator when real estate is sold and are
typically paid after the investors receive their initial investment
plus return.
Back-end Ratio
Lender calculations by which debt (principal, interest, property taxes
and insurance + other monthly bills) is compared with gross monthly
income.
Balance Sheet
Statement of financial condition, which lists assets, liabilities and
stockholder's equity. The net worth of an individual is assets minus
liabilities.
Balloon Loan
A mortgage in which the monthly payment is not intended to repay the
entire loan. The final payment is a large lump sum of the remaining
principal.
Balloon Payment
The final lump sum payment of a balloon loan.
Balloon Note Mortgage
A loan that is only partial amortized and requiring a lump sum repayment
at maturity.
Bankruptcy
A legal procedure by which an insolvent debtor can be relieved of repayment
of certain obligations. Bankruptcies remain on a credit rating for 7
to 10 years. This may become a problem in obtaining financing.
Bargain and Sales Deed
The most widely used type of real estate deed, this makes the transfer
of property from one individual to another for a consideration in the
form of a sale.
Bearing Wall
Wall that supports its weight and the weight of other parts of the structure
and are necessary for the stability of a structure. Bearing walls often
include one or more interior walls, as well as the exterior walls. Openings
cut into bearing walls must be reinforced and a different load path
used through the use of headers carry the loads across the top of the
opening.
Bedrock
Soil with solid rock underneath which provides a foundation on which
to construct a building.
Before-tax Income
Total income prior to deduction of taxes.
Belvedere
A summer house on a height or an upper-story open-roofed gallery designed
to give a view of the scenery.
Beneficiary
The lender, who is making a loan, is called either a mortgagee or a
beneficiary. The borrower is the mortgagor.
Beneficiary Statement
Lien holder's statement showing the unpaid balance on a trust deed note.
|
