Category: Glossary

BPO | Brokers Price Opinion.

Borrower | He to whom a thing or money is lent at his request.

Blanket Deed of Trust | A deed of trust secured by more than one lot or parcel of land.

Bill of Sale | Written document by which title to personal property (goods or chattels) is transferred from one party to another.

Bid | An offer by an intending purchaser to pay a designated price for property which is about to be sold at auction.

Betterment | Any improvement of real estate that results in a rise in market value of that property.

Beneficiary | A person entitled to receive money or assets from a trust or an estate. A lender is a beneficiary with a deed of trust or a note as a security for a loan.

Bankruptcy | An action filed in a federal bankruptcy court that allows a creditor to reorganize or discharge credit obligations due to insolvency. A property owner may halt foreclosure action by filing bankruptcy. Bankruptcies remain on a credit record for seven years and can severely limit a person’s ability to borrow. Chapter 7 – “Debtor Wipeout” The court oversees the liquidation of the debtors’ non-exempt assets, distributing the cash proceeds proportionally amongst their creditors. Chapter 11 – This is a business reorganization proceeding. Chapter 13 – “Debtor Workout” This is the almost-automatic choice of most trustors seeking to use a bankruptcy filing to delay the in- evitable trustee’s sale as long as they can. The purpose of this proceeding is to give a “wage earner” time for rehabilitation . . . a temporary respite free from the collection efforts of creditors.

Balloon Payment | A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

Assumable Mortgage | A mortgage that can be taken over (“assumed”) by the buyer when a home is sold. If interest rates have risen, an assumable mortgage at a low rate may prove a selling point for the property.