Land Contract A contract used in a real property sale where the seller keeps the title to the property until the sales price has been paid. Leverage Use of debt financing to purchase an investment. Lien A legal hold against the property as security for the payment of a debt, mortgages, judgments or taxes. Loan to Value Ratio Ratio reflecting the mortgage loan amount to the appraised value or purchase price of a home. The highest price that a buyer is willing to pay and the lowest price that a seller is to accept for real estate.
Marketable Title Enables an owner to sell property without objection.
It is free of any clouds. Mortgage A guarantee of real estate from a borrower as security for the payment of a loan to a lender. Mortgage Insurance Insures the lender against non-payment of a government or conventional loan. The lender for a home loan. Mortgagor The borrower in a home loan.