Land
contract An agreement for the purchase or sale of
real property.
Lease
A written document containing the conditions under which the
possession and use of real property are given by the owner
to another for a stated period of time and for a certain amount
of consideration.
Leasehold
estate An interest in real property held by virtue
of a lease.
Legal description
A technical description of a plot of land that is legally
recognized and used in contracts.
LIBOR
London Interbank Offer Rate. This is the index on which Centex
Home Equity’s ARM loans are based.
LID
Limited income documentation.
Lien
A legal hold or claim of a creditor on the property of another
as security for a debt. Liens are always against property,
usually real property.
Loan-to-value
ratio (LTV) The balance of all mortgages and liens
on the property divided by the fair market value of the property.
Loss payable
clause A clause in a fire insurance policy listing
the priority of claims in the event of destruction of the
insured property. Generally this is the lender on a secured
mortgage.
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