|
HUD
Home Buying Glossary - N
a
b c d
e f
g h
i j
k l
m n
o p
q r
s t
u v
w x
y z
Negative
Amortization -
The gradual increase in the balance of a loan, caused
by adding unpaid interest to the loan balance.
The unpaid interest is a result of monthly payments
being less than the amount required to pay the interest.
Negative amortization can occur on a potential or
scheduled basis:
a) Potential Negative Amortization:
Negative amortization that results from borrower
optional payment caps.
b) Scheduled Negative Amortization:
Negative amortization that is scheduled to occur during
the life of the loan.
Negative
Cash Flow - See Cash Flow.
Negative
Covenant - A promise not do do something, such as a
restrictive covenant that prohibits detached garages.
Negative
Easement - An easement right that prohibits an owner from
a use.
Negative
Fraud - Fraud resulting from failure to disclose rather
than from an affirmative act.
Negotiable
Instrument - Written unconditional promise or order to pay
a certain sum in money now or at a definite time in the
future.
Neighborhood
- A residential or commercial area with similar types of
properties, buildings of similar value or age, predominant
land-use activities and natural or fabricated geographic
boundaries, such as highways or rivers.
Neighborhood
Life Cycle - The period during which most of the
properties in a neighborhood undergo the following three
states: 1) development (growth), in which improvements are
made and properties experience rising demand and value, 2)
equalibrium, in which properties undergo little change; and 3)
decline, in which properties become less desirable and require
an increasing amount of upkeep to retain their original
utility.
Net
Lease - A lease under which the tenant pays all expenses
including taxes and insurance and gives the landlord a net
amount as rent.
Net
Listing - A listing whereby the broker receives as
commission that portion of the sales price that exceeds the
listing price.
Net
Operating Income - Income remaining after operating
expenses are deducted from effective gross income.
Net
Profit - Profit after all expenses (not including payment
for debt service or taxes on the profits).
Net
Spendable - See Cash Flow.
Net
Worth - The difference between total assets and total
liabilities.
Net
Yield -
The part of the gross yield remaining after the
deduction of all charges or costs, including servicing.
NOD
-
See Notice of Default.
Nominal
- 1) the rate state in the instrument. 2) A minimum
quantity.
Nominee
- A new person designated to perform under a contract in the
place of another. Unlike an assignment, where the
original party maintains some secondary liability, the
original person is relieved totally of his/her obligations by
the designation of a nominee.
Nonconforming
Use - A use existing prior to zoning that in snot in
conformance with the zoning.
Noncumulative
Zoning - Zoning that allows only a specified category of
use (not less-restrictive uses).
Nondisturbance
Clause - A mortgage condition by which the borrower agrees
not to terminate leases (if the tenants are in compliance with
the lease terms) in the event of mortgage foreclosure.
Non-freehold
Estate - A leasehold interest.
Noninstitutional
Lender - Lender other than banks, S&Ls, licensed
mortgage lenders, etc., such as a pension fund or private
individual.
Nonjudicial
Foreclosure - Foreclosure under the power of sale
provision of a mortgage or deed of trust.
Non-Owner
Occupied Property -
Property purchased by a borrower not for a primary
residence but as an investment with the intent of generating
rental income, tax benefits and profitable resale.
Nonrecourse
Loan - A loan for which the borrower is not personally
liable (no deficiency judgment is possible).
Notary
Public - A public officer authorized to administer oaths
to attest or certify certain types of documents, to take
depositions, and to perform certain other civil functions.
Note
-
A written promise by one party to pay a specified sum
of money to a second party under conditions agreed upon
mutually.
Also called a “promissory note.”
Note
Rate -
The interest rate on the mortgage loan.
Notice
of Cessation - A recorded notice shortening the time for
the filing of mechanic's liens when work has ceased prior to
completion of the improvement.
Notice
of Completion - A notice filed by an owner that starts a
statutory period in which mechanics' liens must be filed.
Notice
of Default -
A notice recorded after the occurrence of a default
under a deed of trust or mortgage.
Typically required by an interested third party that
has insured or guaranteed the loan.
Notice
of Intent to Sell - States intent to sell defaulted
property at public auction to the highest bidder. Must
be posted and published according to specific
regulations.
Notice
of Nonresponsibility - A notice filed an owner to protect
the property from liens for work authorized by another person,
for example, a tenant.
Notice
to Quit - A statutory notice given by a landlord to the
tenant to vacate the premises.
Novation
- The substitution of one agreement for another, or the
substitution of parties to the agreement.
Nuisance
- A use of property that interferes with the quiet enjoyment
by others of their properties. An abatement action can
be taken to stop the nuisance.
Nuncupative
Will - An oral deathbed will for personal property of low
value. It must be reduced to writing by witnesses.
Not valid in all states.
|
