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Land Contract
Installment plan for
buying a house. It is used as an
alternative to obtaining a loan from a
traditional, source such as a mortgage
banker or savings and loan.
Late
Charge
A penalty for failure to
pay an installment on time.
Lease
with Option to Purchase
A lease
under which the lessee has the right
to purchase the property. The option
may run for the length of the lease or
only for a portion of the lease
period.
Legal
Description
An expanded and
unique description of a property that
is used on legal documents, such as
deeds and deeds of trust. Recorded
documents generally require a legal
description.
Lender
A general term encompassing all
mortgages,, and beneficiaries under
deeds of trust.
Lender's
Instructions
A document that
lenders prepare for the closing agent
that outlines the requirements for
loan closing.
Letter
of Intent
A formal method of
stating that a prospective developer,
buyer or lessee is interested in
property.
Lien
An encumbrance against property
for for the payment of debt; a lien
may be a mechanic's lien, mortgage,
unpaid taxes or judgment.
Life
Estate
An estate in real property
for the life of a living person. The
estate then reverts back to the
grantor or to a third party.
Limited
Partnership
A partnership
consisting of one or more general
partners who conduct the business and
are responsible for losses, and one or
more special partners, who contributes
capital and are liable only to the
amount contributed.
Lis
Pendens
A notice that litigation
is pending on a property.
Listing
Agreement
Agreement between a
property owner and a real estate
owner, authorizing the broker to find
a buyer for the property. If the sale
is consummated, the listing broker
will be paid a fee.
Loan
Discount/Premium Fees
Fees that
borrowers pay (sometimes seller will
pay for borrower) that adjust to the
yield requirement of the investor.
Loan discount denotes an investor
yield requirement higher than the note
rate. Loan premium denotes an investor
yield requirement lower than the note
rate.
Loan
Lock
Guarantee from a lender that
a borrower will receive the interest
rate in effect at the time of loan
application.
Loan
Officer
A person that helps
borrowers through the loan selection,
processing and closing of a mortgage
loan. Loan officers can be paid a
commission or salary for their
services and can work for mortgage
brokers, mortgage bankers, or
depository institutions.
Loan
Origination Fees
The cost to
obtain a loan that is paid to the
originating lender or broker.
Loan
Package
The information regarding
a borrower and property necessary
which is the basis for a lender's
credit decision to extend or deny
credit.
Loan
Ratio
The amount of a loan to the
value or selling price of real
property.
Loan
Servicing
The function of
collecting loan payments, managing the
property tax and insurance escrows,
foreclosing on defaulted loans and
remitting payments to the
investor/beneficiary.
Loan-to-Value
Ratio
The ratio of the mortgage
loan amount to the property's
appraised value or selling price,
whichever is less.
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