We Buy Houses Glossary - A

Abstract
A summary of the public records concerning to the designation regarding a particular piece of land. In cases of any title faults they must be cleared before a buyer purchases it and markets the insurable title.

Amortization
The process of settlement of a mortgage loan through monthly repayments of major and interest; the monthly payment amount is based on an agenda that will permit you to own your home at the end of a particular time period (for instance, 15 or 30 years)

Appraisal
An estimation of the worth of the property, made by an eligible professional called an "appraiser". An appraisal is necessary by your bank to resolve how much money it will lend you.

Asset
An asset is regarded as the property of monetary value that is possessed by a person. Assets include real property, personal property, and enforceable claims against others (plus bank accounts, stocks, mutual funds…).

Assumption
An agreement made by the buyer to assume the legal responsibility under an existing note held by a mortgage or deed of trust. The lender generally approves the new debtor to release the existing debtor form legal responsibility. Example: Assuming a loan can usually save the buyer money, since this is an existing mortgage debt, unlike a new mortgage where closing costs as well as new, possibly higher, market-rate interest charges may apply.

Agent
An authorized person to act for or represent another. Authority may be either written or implied.

Agency
Any correlation in which one party acts for or represents another under the influence of the latter. Agency concerning real property should be in writing, such as listing, trust, powers of attorney, etc.