Page 40 - Home Buyers and Sellers Guide - Hawaii

Flood Certification: A common term for a Federal Hazard Insurance: Insurance protecting a property Ingress: The right to enter a tract of land.
Emergency Management Agency (FEMA) Standard Flood owner against loss, such as: fire, windstorm, lightning,
Hazard Determination Form (SFHDF). This determines hail, explosion, riot, smoke, property damage, flood
whether land or a building is located within a Special or mudslide. It is usually purchased as part of the
Flood Hazard Area for purposes of flood insurance Homeowner’s Insurance Policy.
requirements under the National Flood Insurance
Program. Heir: One who might inherit or succeed to an interest in
land of an individual who dies without leaving a will
Forfeiture of Title: Provision in a deed creating a condition (intestate).
which will cause title to be passed to another, should
certain circumstances occur. Home Equity Conversion Mortgage: A reverse or reverse
annuity mortgage in which HUD (U.S. Department of
Freddie Mac: Federal Home Loan Mortgage Corporation Housing and Urban Development), through FHA (Federal
(also FHLMC) is a stockholder-owned corporation Housing Administration), guarantees that the borrower
chartered by Congress that purchases mortgage loans. will receive monthly payments from the insurer (FHA), in
the event the lender is unable to make payments to the
G borrower.
Ginnie Mae: Government National Mortgage Association Home Equity Line of Credit (HELOC): A loan in which the
(also GNMA) is a wholly owned United States corporation lender agrees to lend a maximum amount within an
that guarantees privately issued securities backed by agreed period (called a term), where the collateral is the
pools of mortgages insured by FHA (Federal Housing borrower’s equity in his/her house.
Administration), FMHA (Farmers Home Administration) or
VA (Veterans Administration). Homeowners Insurance: Insurance protection paying
benefits for damage to improved real property or
Graduated Payment Mortgage: A loan in which monthly possessions in the home. Also provides liability coverage
payments are relatively small in the beginning and against accidents in the home or on the property.
gradually increase in dollar amount over the life of the
mortgage. HUD-1: The HUD-1 is a type of settlement statement
which, prior to the TILA-RESPA Integrated Disclosure
Grantee: A person who acquires an interest in land by deed, (TRID) Rule, was required for use with all federally
grant or other written instrument. related mortgage loans. It has been supplanted by the
“Closing Disclosure” as a required form, but the HUD-
Grantor: A person, who, by a written instrument, transfers to 1 will continue to be used for reverse mortgage and
another an interest in land. HELOC transactions. In addition, it may remain in use for
some transactions that do not involve federally related
Guardian: One appointed by the court to administer the mortgage loans since it functions well as a balance sheet
affairs of an individual not capable of administering his or of the settlement.
her own affairs.
H I
Improvements: Those additions to raw land tending to
Harbor Line: An arbitrary line set by authorities on navigable increase value, such as buildings, streets, sewer, etc.
rivers, beyond which wharves and other structures may
not be built. Also designated as line of navigation. Indemnify: To make payment for a loss or to hold another
harmless from loss.
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Lien: A hold, claim or charge allowed a creditor upon the
land of a debtor. Some examples are mortgage liens,
Insurance: A contract of indemnity against specified perils. judgment liens and mechanics’ liens.
Interim Financing: Temporary or short-term loans. Often
used with new construction. Usually replaced with Life Estate: A grant or reservation of the right of use,
permanent long-term financing. occupancy and ownership for the life of an individual.
Lis Pendens: A notice recorded in the official records of a
Intestate: Designates the estate or condition of failing to county to indicate that a suit is pending affecting title to
leave a will at death. “To die intestate.”
the land in the jurisdiction where the notice is recorded.
J Loan Estimate: A three-page Loan Estimate (also called
LE) must be provided to the consumer no later than three
Joint Tenancy: An estate where two or more persons hold business days after they submit a loan application for
real estate jointly for life, the survivors to take the entire most mortgages. The Loan Estimate provides information
interest on the death of one of the joint tenants. about key features, costs and risks of the mortgage loan
Judgment: A decree of a court. In practice, this is the lien for which the consumer is applying.
or charge upon the land of a debtor resulting from the Loan Policy: See “Lender’s Policy.”
court’s award of money to a creditor. Also see “Judgment
Lien.” Loss Payable Clause: A clause in a contract of insurance
which says any loss will be paid to two or more parties
Judgment Docket: The record book of a County Clerk, as their interest may appear. Usually the owner and the
where a judgment is entered in order that it may become mortgage lender.
a lien upon the property of the debtor.
Lot: A part of a subdivision or block having fixed boundaries
Judgment Lien: The charge upon the land of a debtor ascertainable by reference to a plat or survey.
resulting from the decree of a court properly entered into
the judgment docket. M
L Marketable Title: A good title about which there is not fair or
reasonable doubt.
Land Contract: See “Contract for Deed.”
Mechanic’s Lien: A lien allowed by statute to contractors,
Lease: A grant of the use of land for a term of years in laborers and material suppliers on buildings or other
consideration of the payment of a monthly or annual structures upon which work has been performed or
rental. materials supplied.
Lender’s Policy: A form of title insurance policy which Metes and Bounds: A description of land by courses and
insures the validity, enforceability and priority of a lender’s distances.
lien. This policy does not provide protection for the owner. Mortgage: An instrument used to encumber land as security
Lessee: One who takes land under a lease. for a debt.
Lessor: One who grants land under a lease. Mortgage Banker: A specialized lending institution that
lends money solely with respect to real estate and
secures its loans with mortgages on the real estate.
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