Glossary

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Acceleration Clause

An advance of the due date on a debt established through a clause in a mortgage or deed of trust.

Adjustable Rate Mortgage (ARM)

Where the interest rate on the note and mortgage can vary on a set schedule or on a formuladuring the life of the loan.

Agreement of Sale

A written contract laying out the terms of a sale between the buyer and seller.

Amortization

The process of decreasing, or accounting for, an amount over a period. When used in the context of a home purchase, amortization is the process by which the loan principal decreasesover the life of your loan.

Appraisal

A professional evaluation procedure used to estimate the value of a property. An appraisalusually has recent sales of comparable properties in an area. The valuation methods for appraisals include sales comparables and income and cost-basis analyses.

Appreciation

An increase in the value of real property or assets.

Arrears

A past due amount on a debt, which starts to accrue from the date on the first missed payment.

As-is Condition

The purchase or sale of a property in its existing condition without repairs.

Asking Price

A seller's stated price for a property.

Assessed Value

The dollar value assigned to a property for purposes of measuring applicable taxes. Assessedvaluation is used to determine the value of a residence for tax purposes and takes comparablehome sales and inspections into consideration.

Assessor

An assessor is a specialist who calculates the value of property.

Assessor`s Parcel Number

A uniquely identifiable number assigned to each parcel of land by the County Tax Assessor.

Assignment

The legal transfer of a note and mortgage from one holder to another. Assignments can occurmore than once for a note and mortgage.

Assumption of Mortgage

A mortgage loan that can be taken over by the buyer at the time of sale of the property.

Auction

A public proceeding where properties that have gone through Notice of Default (NOD) and Notice of Sale (NOS) are made available for purchase by a public bidding process.

Automatic Stay

In United States bankruptcy law, an automatic stay is an automatic injunction that haltsactions by creditors, to collect debts from a debtor who has declared bankruptcy. This includes foreclosure.