Real Estate Glossary F

Click on the beginning letter of the real estate term to find the definition.

A B C D E G H I J L M N O P Q R S T U V W Y

Face value: The current principle balance on an income stream.

Factor: A funding source that specializes in funding accounts receivable.

Factoring: The purchase of a business' accounts receivable at a discount.

Finance Charge: The total dollar amount of all charges and interest the lender will make to the borrower over the life of the loan. Includes everything except principal.

Finder's Fee: A fee agreed to be paid to one person, called a finder, who locates another person, such as a buyer or lender, desired by the party promising to pay the fee. The fee is payable when the deal is consummated. In real estate transactions the finder may introduce the parties, but he may not engage in negotiations unless he holds a real estate broker's or a salesman's license.

First Lien: The debt recorded first (earliest in time) such as a first mortgage or first deed of trust. This debt has priority as a lien over all other debts. In cases of foreclosure, the first lien will be satisfied before other liens are paid off.

Foreclosure: A legal proceeding in court to seize property given as security for a debt that is in default.

Foreclosure Sale: The sale of property in a foreclosure. Most often, it is the sale of the property securing a debt after default in payment.

Free and Clear: There are no money encumbrances against the property. Generally used to refer to a property free of mortgage debt.

Funding Source: An individual investor or an investment company that buys income streams.

Future Advance: Money loaned to a borrower after the execution of a trust deed under a clause making the trust deed security for such later advanced.