June 2008
The Archives
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Title InsuranceTitle Insurance. An insurance policy protecting against loss arising from defects in the title to real property, title insurance is meant to safeguard the insured's financial interest in the property against title defects, liens, and other matters. Risks covered by title insurance include: - Identity theft and forged signatures on prior deeds in the chain of title; - Fraudulent mortgage cancellations; - Documents signed under a false or expired power of attorney; - Wills that have not been admitted to probate, and the interests of undisclosed or missing heirs; - Deeds and other documents signed by someone legally incapable, such as a minor; - Mistakes made by ...
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POCPOC (P.O.C., Paid Outside of Closing). Items disclosed on the settlemet statement which are paid outside of the closing. POC items are shown for informational purposes only and are not included in the overall settlement statement totals. For example: if a borrower paid for an appraisal before the closing, the charge of that appraisal would appear on the HUD in the POC column.
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Promissory NotePromissory Note (Note). The written agreement by which one person promises to pay a sum of money to another. Typically, in a closing, the obligation of the borrower to pay arises from the repayment of the loan granted to the borrower by the mortgage lender. The note is one of the most important documents to be signed by the borrower at closing. The crucial terms of a note include the principal amount to be paid, the interest accruing on that principal, and the maturity date by which the entire principal must be repaid.
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Joint Tenancy With Rights of SurvivorshipJoint Tenants with Rights of Survivorship (JTROS, JTWROS). Co-ownership of real property by two or more persons where each owner holds an equal interest in the property; and upon the death of one owner, their interest automatically passes to the survivors without probate.
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Due-On-Sale ClauseDue-On-Sale Clause. A provision in a loan allowing the lender to call the balance of the loan due if there is a transfer of ownership of the collateralized property. The Due-On-Sale clause is a standard provision in most mortgages. The current Fannie Mae/Freddie Mac Georgia Due-On-Sale Clause reads as follows: 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, “Interest in the Property” means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow ...