Fair Credit Reporting Act
A law protecting consumers that regulates the reporting of consumer credit by agencies and establishes procedures for correcting errors on an individual record. |
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Fair Market Value
A price, which assumes an informed buyer and a willing seller would come to in a reasonable amount of time. The determination of this value is usually arrived at by the use of comparable sales. |
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Fannie Mae (FNMA)
The Federal National Mortgage Association is a congressionally chartered, shareholder-owned company. This organization is the nation's largest supplier of home mortgage funds. |
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Federal Housing Administration (FHA)
Agency under the U.S. Department of Housing and Urban Development (HUD), it insures loans made by approved lenders to qualified borrowers, in accordance with its regulations. |
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Federal Tax Lien
Lien imposed by the Federal Government on all real property of a taxpayer who fails to pay the federal government the taxes for which he or she is liable. |
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Fee Simple
Unrestricted ownership of property, wherein the owner may dispose of the property according to his wishes. |
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Fiduciary
Regarding financial arrangements, a relationship of trust wherein the fiduciary must act in the best interests of the principal. |
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Finance Charge
The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee and any other charges paid to the lender and/or broker. An appraisal, credit report and title search fees are not included in the finance charge calculation. |
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First Mortgage (or First Deed of Trust)
A mortgage (or deed of trust), which has priority of claim over any other voluntary lien against a particular property. |
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Fixture
Something that is fixed or attached to a dwelling and included in the sale of the property, unless indicated in the contract. |
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Flood Insurance
Insurance that compensates for physical property damage resulting from flooding. Required for properties located in federally designated flood zones. |
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Floor Plan
Scale drawing of a horizontal section through a building at a given level; contrasts with elevation. |
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For Sale By Owner (FSBO)
A property that is being offered for sale directly by the owner without the use of a real estate agent. |
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Foreclosure
A proceeding in which the owner of a property is forced to sell in order to satisfy a lien. Normally occurs when payments are not made on a mortgage for a specified period of time. |
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Freddie Mac (FHLMC)
A corporation authorized by Congress to provide a secondary market for residential mortgages. |
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Free and Clear
Referring to the ownership of real property upon which there is no lien, encumbrance, recorded judgment or the right of anyone to make a claim against the property. This term is used in contracts for sale of real property and deeds, to state that the title has no claim against it. |
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Frontage
The extent of the front of building or plot of land (as along a street or river etc). |
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Full Disclosure
The revelation of all pertinent facts about relationships (e.g. agency) and a property by both the broker and seller, which might influence a sale. Most states outline the parameters of disclosure. |
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Full Price Offer
Offer made by a buyer to the seller of a property for the full sale amount. |
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