The rights of record of the head of a family or household in real estate, owned and occupied as a home, which are exempt from seizure by creditors. That property which produces a money income rather than yielding satisfaction to the owner. Institutional Lender - A mortgage lender that invests its own funds in mortgages and carries a majority of such loans in its own portfolio, i.e., mutual savings banks, life insurance companies, commercial banks, savings and loan associations. Although individuals hold mortgage loans and service them, they are not generally classified as institutional lenders. Late Charge - Penalty permitted by both FHA and VA covering any monthly payment not made by the fifteenth of the month in whihc payment is due.
Some lenders exact a late charge for delinquencies on installments of conventional loans.
Lease - A species of contract for the possession and profits of lands and tenements either for life or for a certain period of time, or during th epleasure of the parties. Legal Description - A description of a parcel of land sufficient to identify the property. Lien - A hold or claim which one person has upon the property of another as a security for some debt or charge. Mortgage - A contract by which specific property is hypothecated for the performance of an act without the necessity of a change of possessions. The price paid by the borrower for insurance under FHA loans, furnished by the federal government in favor of the lender, insuring payment of the loan in the event of default by the borrower after foreclosure.