| Balance sheet | A financial statement that shows assets, liabilities, and net worth as of a specific date. |
| Balloon Loan | Mortgage in which the remaining principal balance becomes fully due and payable at a predetermined time. Most of the time, balloon loans have level payments until the note becomes due and payable. |
| Balloon Payment | The final payment of a mortgage which is larger than the regular payment; it usually extinguishes the debt. |
| Bankrupt | A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee. |
| Bankruptcy | A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee. |
| Basis | Original cost of property plus value of any improvements put on by the seller minus the depreciation taken by the seller. |
| Before-tax income | Income before taxes are deducted. |
| Beneficiary | The lender named on the mortgage note. One entitled to the proceeds of property held in trust; also proceeds of wills, insurance policies, or trusts. The person designated to receive the income from a trust, estate, or a deed of trust. |
| Bill of Sale | Written agreement transferring personal property from one person to another. A written document that transfers title to personal property. |
| Binder Offer to Purchase | A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase real estate. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded.Blanket insurance policy,A single policy that covers more than one piece of property (or more than one person). |
| Blanket Mortgage | A mortgage covering more than one property of the mortgage. |
| Bond | A debt instrument in the capital markets. The US government, corporations and municipalities use bonds to raise money. Bonds can also be backed by real estate loans and the payments from mortgages. Or An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust. |
| Borrower | One who receives funds with the expressed or implied intention of repaying the loan in full. |
| Bridge Financing | A form of an interim loan, generally made between a short term loan and a long term loan when the borrower needs additional time before obtaining permanent financing.ßA form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. |
| Broker | An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services. |
| Building Code | Government regulations specifying minimum construction standards. Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards. |
| Building Line or Setback | Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leased, by building codes, or by zoning ordinances. |
| Buy down | An interest rate buy down is the temporary reduction of the note rate and resulting monthly payments a borrower pays to the lender. The shortfall between the rate on the note and initial payment made by the borrower is usually paid by a third party such as a seller or builder. |
| Buyer's Broker | Agent who takes the buyer as a client, and is obligated to represent their interest above all others, and owes specific fiduciary duties to the buyer. |
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