ALLIGATOR PROPERTY

Today's word: ALLIGATOR PROPERTYTheme for this fortnight: REAL ESTATE             In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not corrected, it will eat up all of the owner's profit, leaving him or her with negative cash flow. Hence, it is called 'Alligator'...

Read More

BRIDGE LOAN

Today's word: BRIDGE LOANTheme for this fortnight: REAL ESTATE              A form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as "swing loan." &nbs...

Read More

HANDYMAN SPECIAL

Today's word: HANDYMAN SPECIAL Theme for this fortnight: REAL ESTATE                 A euphemism for a house that needs considerable renovation and whose owner will only be satisfied if he is a handyman with considerable spare time.               In real estate, a house in need of significant...

Read More

BLIND POOL

Today's word: BLIND POOL Theme for this fortnight: REAL ESTATE                A limited partnership or stock offering with no stated investment goal for the funds that are raised from investors. In a blind pool, money is raised from investors, usually trading on the name of a particular individual or firm, but few restrictions or safeguards are in place for investor security. May...

Read More

BALLOON PAYMENT

Today's word: BALLOON PAYMENTTheme for this fortnight: REAL ESTATE              An oversized payment due at the end of a mortgage, commercial loan or other amortized loan. Because the entire loan amount is not amortized over the life of the loan, the remaining balance is due as a final repayment to the lender.            Balloon payments...

Read More

VRITTAM (18 AUG 2013 - 24 AUG 2013)

THE WEEKLY FINANCIAL NEWS Click on the picture below to see what is the key to support Indian Rupee Indian rupee crisis: RBI raises inflation alert India’s inflation could accelerate in the current fiscal year due to the Indian rupee's sharp depreciation. The Indian rupee touched record low of 65.52/dollar on Thursday and is down 16 per cent so far this year despite efforts by policymakers...

Read More

SWEAT EQUITY

Today's word: SWEAT EQUITY Theme for this fortnight: REAL ESTATE   Contribution to a project or enterprise in the form of effort and toil. Sweat equity is the ownership interest, or increase in value, that is created as a direct result of hard work by the owner(s). It is the preferred mode of building equity for cash-strapped entrepreneurs in their start-up ventures, since they may be unable to contribute much financial capital to...

Read More

AIR RIGHTS

Today's word: AIR RIGHTS Theme for this fortnight: REAL ESTATE             The right to use, control or occupy the space above a designated property.  The rights of an owner to construct a building of a certain density beyond that of the existing zoning or that of the existing structure on the site. Air rights can be leased, sold, or donated to another party. ...

Read More

UNDERWATER MORTGAGE

Today's word: UNDERWATER MORTGAGETheme for this fortnight: REAL ESTATE   A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he can't afford the mortgage payments anymore, perhaps...

Read More

ALT-A

Today's word: ALT-A Theme for this fortnight: REAL ESTATE   A real estate investing term that refers to someone who spends their time trying to locate properties with substantial investment potential. Usually, the intent is to find properties that are distressed and selling at a discount that can be repaired or remodeled and sold for a sizable profit. Sometimes, however, the term is also used to refer to people who find underpriced...

Read More

ZOMBIE TITLES

Today's word: ZOMBIE TITLES Theme for this fortnight: REAL ESTATE   A right to ownership and possession of a home that remains with a person who believes he or she has lost the property as a result of foreclosure. A zombie title is a title to real property that happens when a lender initiates foreclosure proceedings by issuing a notice of foreclosure and then unexpectedly dismisses the foreclosure.            ...

Read More

JUNK FEES

Today's word: JUNK FEES Theme for this fortnight: REAL ESTATE              Nebulous charges assessed at the closing of a mortgage that go to the originator or lender. These fees are hidden in the mortgage documents and are usually assessed as raw dollars rather than "points" or a percentage of the loan. Junk fees may or may not pay for an actual service to the borrower, but they...

Read More

BIRD DOG

Today's word: BIRD DOG Theme for this fortnight: REAL ESTATE   A real estate investing term that refers to someone who spends their time trying to locate properties with substantial investment potential. Usually, the intent is to find properties that are distressed and selling at a discount that can be repaired or remodeled and sold for a sizable profit. Sometimes, however, the term is also used to refer to people who find underpriced...

Read More

FREEDOM SHARES

Today's word: FREEDOM SHARES Theme for this fortnight: BONDS   Original issue discount bonds issued by the U.S. Treasury from May of 1967 to October of 1970. Freedom shares had a final maturity of 30 years from their issue date and were originally offered in combination with Series E bonds to promote public investment in government bonds. Also known as "savings notes". All remaining freedom shares reached final maturity in October...

Read More

JUNIORS

Today's word: JUNIORSTheme for this fortnight: BONDS                  Juniors are a class of bonds or notes that have a lower priority than other debt claim on the same asset or property. It is a debt that is lower in repayment priority than other debts in the event of the issuer's default. Junior debt is usually an unsecured form of debt, meaning there is no...

Read More

SENIORS

Today's word: SENIORSTheme for this fortnight: BONDS     A debt security, or bond, that takes precedence over other unsecured notes and must be repaid in the event of bankruptcy. Senior notes are relatively secure because of their priority status in the event of liquidation. With this added security comes a reduced interest or coupon rate as compared to junior bonds.                ...

Read More

VRITTAM (4 AUG 2013 - 10 AUG 2013)

THE WEEKLY FINANCIAL NEWS Govt set to announce steps to contain CAD, boost Re   IRDA allows banks to act as insurance brokers Earlier banks used to act as an agent for the insurance companies, but now The Insurance Regulatory and Development Authority (IRDA) has allowed banks to act as insurance brokers, subject to RBI approval. National Spot Exchange Ltd investors' loss: Stock brokers, portfolio managers...

Read More