Balance Sheet
A document showing the financial situation – assets, liabilities and net worth – of a company at a specific point in time.
Balloon Payment
A lump sum principal payment due at the end of some mortgages or other long-term loans.
Bankruptcy
Proclamation by a court of an individual’s (or organization’s) state of insolvency, or inability to pay debts. Petition may be brought by an individual or creditors, with a goal of orderly and equitable settlement of obligations.
Bearer
The legal owner of a piece of property.
Bequest
A gift of personal property by will.
Bi-Weekly Mortgage
A payment plan under which the borrower pays one half of a monthly mortgage payment every two weeks.
Bill of Sale
A document by which one transfers ownership of goods to another.
Binder
Sometimes known as an offer to purchase or an earnest money receipt. A binder is the acknowledgment of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.
Blanket Mortgage
A mortgage covering at least two or more pieces of real estate, both of which together serve as collateral for the loan.
Bona Fide
In good faith.
Bond
A document representing a right to certain payments on underlying collateral.
Borrower (Mortgagor)
An individual who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full.
Broker
An individual who assists in arranging funding or negotiating contracts for a client but does not loan money himself.
Buydown
A situation in which the seller contributes money, allowing the lender to give the buyer a lower rate and payment, usually in exchange for an increase in sales price.
Buyer’s Broker
An agent hired by a buyer to locate a property for purchase and to represent the buyer in negotiations with the seller’s broker.