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Land Contract - Loan Commitment

Page 2
Loan Consolidation - LTV

Land Contract
Lapse
Late Charge
Late Payment
Latent Defect
Lease
Lease Extension
Lease Option
Lease-Purchase Mortgage
Leasehold Estate
Legal Description
Lessee
Lessor
Letter of Explanation
Letter of Intent
Leverage
Liabilities
LIBOR
Lien
Life Cap
Liquid Assets
Liquidation
Liquidation Sale
Lis Pendens
List Price
Listing
Live-Work Space
Load Bearing Wall
Loan Application
Loan Application Fee
Loan Commitment

Land Contract
An agreement whereby the buyer is in possession of the property and makes certain payments while outright ownership still belongs to the seller until the entire purchase price is paid.

Lapse
The termination of a policy due to a violation of terms, usually due to failure to pay the necessary premium or payment.

Late Charge
A fee charged to the borrower if required payment is not completed by the specified due date.

Late Payment
The amount a borrower pays in addition to the required payment for past due accounts.

Latent Defect
A defect found in a piece of property that cannot be easily noticed or seen, such as: termite damage, dry rot.

Lease
When referring to real estate, a written agreement where property is rented by the owner to a tenant in exchange for rent and for a certain period of time, all indicated by the agreement.

Lease Extension
The continuation of an existing lease. These types of extensions can be done on for another year or for month-to-month, among other options.

Lease Option
A written agreement between owner and tenant where the tenant is allowed use of the property in exchange for rent. It is very similar to a normal lease but in this case the tenant is given the right to purchase the property for a certain price within a certain time frame.

Lease-Purchase Mortgage
A financing option that allows a potential homebuyer to lease a property with the option to buy. This type of financing is generally done by requiring a monthly rent payment with an additional amount going towards a savings account for the purpose of purchasing the property in the future. The savings may be used towards down payment or closing costs during the purchase of the property.

Leasehold Estate
A tenant's right to use rented property for a certain period of t ime according to one's lease.

Legal Description
A method of identifying property acceptable to a court.

Lessee
The individual who signs a lease, usually the tenant.

Lessor
The person who grants a lease, usually the owner.

Letter of Explanation
A condition required by lenders to explain or clarify certain situations in order for to obtain a loan approval to move forward.

Letter of Intent
Written notification that a buyer intends to purchase a property.

Leverage
The use of a small amount of cash accompanied with financing to purchase something. This concept is one of the core ideas behind real estate investing.

Liabilities
A borrower's debt responsibilities.

LIBOR
An abbreviation for London Interbank Offered Rate.

Lien
A legal claim against a property for the payment of a debt. These types of records will inhibit the sale or refinance of a property if not paid off.

Life Cap
The highest limit an interest rate may adjust during the life of the loan.

Liquid Assets
Property or funds in bank accounts that can be easily converted into cash. For example: Money in savings accounts, checking accounts.

Liquidation
The sale of property in order to pay off debt owed.

Liquidation Sale
The auction or sale of property. The proceeds go towards paying off debt owed to creditors.

Lis Pendens
A pending lawsuit.

List Price
The asking price of the seller for an item or piece of real estate.

Listing
A written or oral authorization by the seller for a real estate agent to market and sell a piece of property for the seller.

Live-Work Space
A living unit where the occupant or owner both lives and conducts business in the same unit. The most prevalent example of this today is the modern day loft.

Load Bearing Wall
Any interior or exterior wall that supports its weight as well as the weight of other parts of the structure above it.

Loan Application
(aka 1003) A document completed with a prospective borrower's individual identification and financial information. This is one of the first steps to getting qualified for a loan.

Loan Application Fee
A sum charged by a loan agent for accepting a loan application to determine the borrower's borrowing possibilities.

Loan Commitment
A lender's promise to lend a certain amount of money on specific, conditional terms.