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Package Mortgage
A mortgage commonly used in subdivision developments whereby chattels such as appliances are “packaged” into the mortgage along with the real property. Panic Peddling Creating an atmosphere of fear in persuading owners to sell; discriminatory act. Parol Oral, verbal. Parol Evidence Verbal or written testimony, which precedes a written contract. Partial Payment A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan. Normally, a lender will not accept a partial payment, but in times of hardship, you can make this request of the loan servicing collection department. Partial Taking The taking of a portion of a piece of property through condemnation. Parties (Party) Those entities taking part in a transaction as a principal, e.g., seller, buyer, or lender in a real estate transaction. Partition Court proceedings by which co-owners of commonly owned property seek to sever their common ownership; not with tenancy by entirety. Partnership A contract between two or more persons to carry on as co-owners of a business, and to share the profits in certain proportions. Party Wall A wall erected on the line between adjoining properties, which are under separate ownership, for the use of both owners. Patent A conveyance for the transfer of title to land owned by the government; land patent. Payment Bond The part of a performance bond which assures the owner that material and labor furnished in the construction of the building will be fully paid for and no mechanic’s liens will be filed. Payment Change Date The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date. Percentage Lease A lease of property in which the rental is based upon the volume of gross sales made on the leased premises. Performance Bond A bond which provides assurance of the completion of an undertaking in accordance with an agreement, such as that supplied by a contractor guaranteeing the completion of a building project. Periodic Payment Cap For an adjustable-rate mortgage where the interest rate and the minimum payment amount fluctuate independently of one another, this is a limit on the amount that payments can increase or decrease during any one adjustment period. Periodic Rate Cap For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be. Periodic Tenancy A lease running from period to period, such as week to week, or month to month. Personal Property Any property that is not real property. Pertinent Relevant, applicable. Piggy Back Loan One lender originates a loan and another joins in as co-operating lender, with neither junior. One property, two lenders. PITI This stands for principal, interest, taxes and insurance. If you have an "impounded" loan, then your monthly payment to the lender includes all of these and probably includes mortgage insurance as well. If you do not have an impounded account, then the lender still calculates this amount and uses it as part of determining your debt-to-income ratio. PITI Reserves A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months. Plain Language Hawaii law requiring certain contracts (under $25,000) and leases to be written in ordinary, everyday, non-legal language. Plan Manager A person who undertakes the duties, responsibilities and obligations of managing a time share plan. Planned Unit Development (PUD) A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the development or association. Contrast with condominium, where an individual actually owns the airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association. Plat A plan or map of a certain piece or pieces of land. Plat Field Book A public record containing facts pertaining to land. Plottage The land increment produced by combining smaller individually owned plots into a large tract under a single ownership Point A point is 1 percent of the amount of the mortgage. Police Power The inherent right of a government to enact such legislation as may be deemed necessary to protect and promote the health, safety and general welfare of the public, such as zoning. Power of Attorney A legal document that authorizes another person to act on one's behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time. Power of Sale A provision in a mortgage permitting the lender, upon borrower’s default, to sell the secured property at public auction without the need to have a court foreclosure. Pre-approval A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender. Contrast with pre-qualification. Prepayment Clause Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized. Prepayment Penalty A fee that may be charged to a borrower who pays off a loan before it is due. Pre-qualification This usually refers to the loan officer's written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower. Prescription An easement or title obtained by possession for a prescribed period; prescriptive rights. Prima Facie Evidence Evidence which is good and sufficient on its face (“at first view”) to establish a given fact or case, unless rebutted or contradicted. Primary Money Market The source of loan funds available directly to borrowers, whether for first or second mortgages; loan origination. Prime Rate The interest rate that banks charge to their preferred customers. Changes in the prime rate are widely publicized in the news media and are used as the indexes in some adjustable rate mortgages, especially home equity lines of credit. Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the interest rates of mortgage loans. Principal The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage. Principal Balance The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. See remaining balance. Principal, Interest, taxes, and Insurance (PITI) The four components of a monthly mortgage payment on impounded loans. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance. Private Mortgage Insurance (PMI) Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. Probate An action of the court to determine the validity and legality of a last will and testament. Procuring Cause The cause of a series of events which leads to the consummation of a sale. Promissory Note A written promise to repay a specified amount over a specified period of time. Promulgate To publish, announce or declare. Proprietary Lease A lease in a cooperative apartment between the owner-corporation and the tenant stockholder. Proprietorship A business held by a person who has legal title or exclusive right thereto. Prorate To divined or distribute proportionately; to divide monies, usually at time of closing, proportionately between seller and buyer. Prospectus A printed statement distributed to describe and to advertise a new business venture, a real estate project or stock issue. Public Auction A meeting in an announced public location to sell property to repay a mortgage that is in default. Purchase Agreement A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. Purchase Money Mortgage A mortgage on property given by a buyer, either to the seller or to a third party in order to secure a portion of the purchase price. |
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