TENANCY BY THE
ENTIRETY A type of joint tenancy of property that
provides right of survivorship and is available only to a husband
and wife. Contrast with tenancy in common.
TENANCY IN COMMON
A type of joint tenancy in a property without right of survivorship.
Contrast with tenancy by the entirety and with joint tenacy.
TENANT STOCKHOLDER
The obligee for a cooperative share loan, who is both a stockholder
in a cooperative corporation and a tenant of the unit under
a proprietary lease or occupancy agreement.
THIRD-PARTY OBLIGATION
A process by which a lender uses another party to completely
or partially originate, process, underwrite, close, fund, or
package the mortgages it plans to deliver to the secondary mortgage
market. See mortgage broker.
TITLE A legal document
evidencing a person's right to or ownership of a property.
TITLE COMPANY A
company that specializes in examining and insuring titles to
real estate.
TITLE INSURANCE
Insurance that protects the lender (lender's policy) or the
buyer (owner's policy) against loss arising from disputes over
ownership of a property.
TITLE SEARCH A
check of the title records to ensure that the seller is the
legal owner of the property and that there are no liens or other
claims outstanding.
TOTAL EXPENSE RATIO
Total obligations as a percentage of gross monthly income. The
total expense ratio includes monthly housing expenses plus other
monthly debts.
TRADE EQUITY Equity
that results from a property purchaser giving his or her existing
property (or an asset other than real estate) as trade as all
or part of the down payment for the property that is being purchased.
TRANSFER OF OWNERSHIP
Any means by which the ownership of a property changes hands.
Lenders consider all of the following situations to be a transfer
of ownership: the purchase of a property "subject to"
the mortgage, the assumption of the mortgage debt by the property
purchaser, and any exchange of possession of the property under
a land sales contract or any other land trust device. In cases
in which an inter vivos revocable trust is the borrower, lenders
also consider any transfer of a beneficial interest in the trust
to be a transfer of ownership.
TRANSFER TAX State
or local tax payable when title passes from one owner to another.
TREASURY INDEX
An index that is used to determine interest rate changes for
certain adjustable-rate mortgage (ARM) plans. It is based on
the results of auctions that the U.S. Treasury holds for its
Treasury bills and securities or is derived from the U.S. Treasury's
daily yield curve, which is based on the closing market bid
yields on actively traded Treasury securities in the over-the-counter
market. See adjustable-rate mortgage (ARM).
TRUTH-IN-LENDING
A federal law that requires lenders to fully disclose, in writing,
the terms and conditions of a mortgage, including the annual
percentage rate (APR) and other charges.
TWO-STEP MORTGAGE
An adjustable-rate mortgage (ARM) that has one interest rate
for the first five or seven years of its mortgage term and a
different interest rate for the remainder of the amortization
term.
TWO-TO-FOUR-FAMILY PROPERTY
A property that consists of a structure that provides
living space (dwelling units) for two to four families, although
ownership of the structure is evidenced by a single deed.
TRUSTEE A fiduciary
who holds or controls property for the benefit of another
.
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