Glossary in Letter B

Back Title Letter
A letter sent by a titled insurance company to an attorney for examination of the titles for insurance purposes
Back-end Ratio
A lender’s calculation that compares a burrower’s total debt to their gross monthly income. E.g.: principal, interest, property taxes and insurance, etc.
Bankruptcy
A legal proceeding which allows the debtor to disregard certain debts or obligation without paying the full amount owed or the debtor is allowed time to reorganize his financial crisis so he can fully repay his debts. Obligation secured by deed of trust is not discharged with bankruptcy.
Bearer
Lender in whose hands the promissory note remains till the full payment is paid.
Beneficiary
The lender or their successor in interest for whose benefit a trust is created and to whom the debt is owed.
Beneficiary Statement
A written statement of the terms and condition (usually the balance) of a loan secured by a deed of trust.
Bid Authorization Letter
A written authorization intrusting the trustee with the rights to make the initial opening bid at the trustee’s sale on the lender’s behalf. The form will also make proof of any additional amounts to be included in the opening bid, such as advanced fundings to pay delinquent real estate taxes.
Bill of Complaint
The initial paper work filed in many states to begin a foreclosure.
Bill of Sale
– A document which entitles the personal property has been passed from seller to buyer.
Board of Equalization
A Board formed to ensure that local property taxes are assessed in a uniformed manner.
Board-and-batten siding
A siding board composed of 8- to 12-inch-wide nailed vertically to create a barn-like exterior.
Boilerplate
A statement of language used in deeds, mortgage, and other documents.
Bona fide
A legal term that refers to actions or a person who are honest and is in good faith.
Bond
A set sum of money or assets that are available, if there’s any need to pay to a court or other named person upon certain events.
Bonus Room
A room with no specifically designated function, unlike a living room, bedroom or kitchen.
Breach of contract
The failure to perform provisions of a signed contract without a legal excuse.
Breach of Warranty
A seller’s inability to pass clear titles to a buyer.
Broker
A person who acts as a “Go-betweener” between 2 or more parties to handle property transactions or if the person is licensed, operates a brokerage firm.
Broker Price Opinion
A real estate broker’s estimation of the price for which property can reasonably be sold.
Brokerage
The Act of brining together 2 or more parties in exchange for a fee or commission usually by real estate brokerage firms or companies that are licensed to conduct real estate transactions.
Buy down Mortgage
A home loan in which the lender receives a premium as an inducement to reduce the interest rates during the early years of the mortgage.