| Term | Definition |
|---|
| assumable mortgage | An existing mortgage that can be taken over by the buyer on the same terms given to the original borrower. |
| assumption of mortgage | The transfer of title to property to a grantee wherein he assumes liability for payment of an existing note secured by a mortgage against the property; should the mortgage be foreclosed and the property sold for a lesser amount than that due, the grantee-purchaser who has assumed and agreed to pay the debt secured by the mortgage is personally liable for the deficiency. Before a seller may be relieved of liability under the existing mortgage, the lender must accept the transfer of liability for payment of the note. Also known as simple assumption. Contrast withsubject to mortgage. |
| attachment | Method by which a debtor's property is placed in the custody of the law and held as security pending outcome of a creditor's suit. |
| attorney's opinion of title | An instrument written and signed by the attorney who examines the abstracts of title, stating his opinion as to whether a seller may convey good title. |
| attractive nuisance | Something on a piece of property that attracts children but also endangers their safety. For example, unfenced swimming pools, open pits, farm equipment and abandoned refrigerators have all qualified as attractive nuisances. |
| auction | A public sale of property to the highest bidder. |
| balloon mortgage | A mortgage where the final payment is considerably larger than the preceding payments. Contrast with amortized mortgage. |
| balloon payment | A large final payment due at the end of a loan, typically a home or car loan, to pay off the amount your monthly payments didn't cover. Many states prohibit balloon payments in loans for goods or services that are primarily for personal, family or household use, or require the lender to let you refinance the balloon payment before forcing collection. |
| bill of sale | A written instrument given to pass title to personal property. |
| blanket mortgage | One mortgage on a number of parcels of real property. |
