Balloon Payment
The unpaid principal amount of a loan due on a specific date in the future. Usually the amount that must be paid in a lump sum at the end of the term.

Beneficiary
The person who is entitled to receive funds or property under the terms and provisions of a will, trust, insurance policy or security instrument. In connection with a mortgage loan the beneficiary is the lender.

Beneficiary’s Statement
The statement of a lender which gives the remaining principle balance due on a note and other information concerning the loan. It is usually obtained in escrow when the owner wishes to sell or refinance.

Bill of Sale
An instrument by which title personal property is transferred or conveyed.

Bona Fide Purchaser (BFP)
One who buys property in good faith, for fair value, and without notice of any adverse claim or right of third parties.

Broker
A person licensed to act as an agent for another in negotiating the sale or purchase or real property in return for a fee or commission.

Buydown
A financing technique used to reduce the monthly payment for the home buying borrower during the initial years of ownership. Under some buydown plans, a residential developer, builder, or the seller will make subsidy payments (in the form of points) to the lender that “buydown,” or lower, the effective interest rate paid by the home buyer, thus reducing monthly payments for a set period of time.