Definition: the relationship between the amount borrowed and either the appraised value or sale price (whichever is lower) of a property
Used in a Sentence: The higher the LTV, the lower the lender’s safety cushion should the borrower default.
Definition: an additional source of income for lenders. Servicing fees are based on the unpaid balance of loans serviced.
Used in a Sentence: Loan payment collection and recordkeeping for mortgages is part of loan servicing that lenders charge a fee for.
Definition: a charge by a lender for taking a mortgage in exchange for a loan
Used in a Sentence: The loan origination fee is indicated on the settlement statement provided at the closing.
Definition: legal rights related to land abutting an ocean, sea or lake, usually extending to the high-water mark
Pronunciation: ˈli-tə-rəl; ˌli-tə-ˈral, -ˈräl\ \ˈrīt\
Used in a Sentence: Since the land was located next to a lake the owner had littoral rights to the property extending to the water’s edge.
Definition: a lawsuit; the act of carrying on a lawsuit; a case before a court of law
Used in a Sentence: The seller started litigation against the buyer when they could not agree on the disposition of the earnest money.
Definition: a written employment agreement between a property owner and a real estate broker or sales agent authorizing the broker/agent to find a buyer or tenant for certain real property
Used in a Sentence: It is important that all owners of record sign the listing agreement.
Definition: notice of a pending action involving title or possession of real property; action pending
Used in a Sentence: A lis pendens informs the public that a legal action is pending against a property.
Definition: The ability to sell an asset and convert it into cash at a price close to its true value.
Used in a Sentence: Publically traded stocks have a lot of liquidity because they can be sold quickly and converted into cash.