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Market Approach (To Value) |
One of the steps in the valuation process. The property being appraised is compared with similar properties that have recently been sold or offered for sale. Adjustments are made to compensate for differences between the comparables and the subject property to obtain the market value of the subject. |
Marketable Title |
A title that may not be completely clear, but has only minor objections that a well-informed and prudent buyer of real estate would accept. |
Market Value |
The highest price which a buyer, willing, but not compelled to buy, would pay, and the lowest a seller, willing, but not compelled to sell, would accept. |
Maturity Date |
The final day of the term of the mortgage. |
Mechanics' Lien |
A lien for the price of the work or materials provided upon the estate or interest of the owner in land. It ceases to exist upon the expiration of a statutory period after the last work is done or the last material furnished unless in the meantime a claim of lien is registered. |
Metes and Bounds |
A system of land description whereby all boundary lines are set forth by use of terminating points and angles - metes referring to a limit or limiting mark and bounds referring to boundary. |
Mill Rate |
A rate which multiplies by each one thousand dollars of property assessment gives the annual real estate taxes. |
Moratorium |
A period during which a borrower is granted the right to delay fulfilment of an obligation. |
Mortgage |
Any charge on any property for securing money or money's worth. |
Mortgage Banker |
One who originates mortgages with the intent to sell them to permanent investors with an agreement that the originator service these loans for the investor. |
Mortgage Bond |
A charge on a company's assets and earnings. It is a mortgage held by a trustee, paid by the borrower, but who acts on behalf of the lenders. |
Mortgage Clause |
See Loss Payable Clause. |
Mortgagee |
The lender or creditor. |
Mortgagee in Possession |
A mortgagee goes into possession when he deprives the mortgagor of the management and control of the mortgaged property. |
Mortgage Impairment Insurance |
A master insurance policy carried by mortgage lenders which provides them with insurance proceeds in the event of an otherwise uninsured loss of a property securing their debt. Some policies also insure losses resulting from the borrower's failure to pay real estate taxes. |
Mortgage Insurance |
Insurance available through C. M. H. C. or private insurers covering whole or partial losses of principal and interest of a mortgage loan. |
Mortgage of a Mortgage |
Also called a sub-mortgage or a derivative mortgage. A lender who holds a mortgage borrows some money, and as security for the loan he mortgages the mortgage he holds. In fact, he assigns the mortgage on the condition that it will be reassigned to him when he has paid the amount of the loan to him. |
Mortgaged Out |
Situation when the total mortgage debt equals or exceeds the market value or cost of the property. |
Mortgage Portfolio |
The aggregate of mortgage loans held by an investor. |
Mortgage Servicing |
The task carried out either by the lender or another party, of collecting mortgage payments falling due and managing other mortgage administrative duties. |
Mortgagor |
The borrower or debtor |
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