Foreclosures Glossary - Letter L

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lally column

A pipe that is filled with concrete and used to support girders and beams.

laminate

A material that is used to seal countertops.

lanai

An open living room or a room similar to a porch; commonly found in homes in warm climates.

landscape

Improving the grounds surrounding a home by adding flowers, shrubs and trees.

landscape architect

A professional who has an architectural degree in landscaping and is trained in horticulture, design and planning of properties.

landscape contractor

A professional who carries out the plans of a landscape architect or a landscape designer.

landscape designer

A designer who is trained in horticulture and landscape planning, but does not necessarily hold a degree.

lap siding

A type of siding that has horizontal boards each overlapping the board below it.

late charge

A fee imposed by a lender when the borrower does not make a payment on time.

late payment

A payment a lender receives after the due date has passed.

latent defect

A problem with a property that is not visible; such as bad wiring, termite damage or lead paint.

lead

A metallic chemical present in lead-based pains and lead plumbing; exposure to this chemical has been linked to health risks.

leader

Part of a gutter system that carries the rainwater from the gutters to the ground.

lease

A legal agreement containing the terms and conditions of a renters occupancy.

lease option

A lease that contains that allows the purchase of the property for a specified price within a specified time frame.

lease purchase

A lease purchase contract that has a closing date and provides options to the seller should the buyer default.

leasehold

A contract that gives the right to inhabit a property for a specified period of time after which the property reverts back to the owner.

leasehold estate

An arrangement in which an individual possesses a property on a long-term lease but does not own the property.

leasehold interest

A contract that gives the right to inhabit a property for a specified period of time after which the property reverts back to the owner.

legal blemish

Problems with a piece of property such as a zoning violation or a fraudulent title claim.

legal description

Identification of property that is acceptable to the courts.

lender

A company that offers home loans.

lessee

An individual who is leasing a property.

lessor

An individual who leases a property to another individual.

letter of intent

A formal agreement that states it is the buyer’s intention to purchase a property for a specified price on a specified date.

leverage

The use of a small down payment to buy a property.

levy

The amount of money a governing body certifies is due to be paid from the property tax for a specified purpose.

liabilities

The financial debts and obligations of a borrower.

liability insurance

A type of insurance policy that protects owners against claims of negligence, personal injury or property damage.

LIBOR

London Interbank Offered Rate is an index used to determine interest rate changes for adjustable rate mortgages.

lien

A claim placed on a property by and individual or company as security for money owed.

LIEN HOLDER

A person or a company that places a lien on real properties.

life cap

The limit of the amount that a loan rate can change during the term.

life-cycle cost analysis

A projection of the operating, maintenance and replacement costs, calculated by an architect.

lifetime rate cap

A maximum interest rate that may not be exceeded over the entire life of an adjustable rate loan (ARM).

limited partnership

A type of ownership where a general partner makes the groups investment decisions, oversees the investment and is primarily liable for any losses.

lintel

A horizontal piece over a door or window that carries the weight of the structure above it.

LINE OF CREDIT

The maximum amount of credit a lender can extend the borrower over a set period of time. In real estate, a borrower’s line of credit is secured through one’s property.

liquid assets

Cash and other assets that can be quickly and easily converted to cash.

liquidated damages

A sum of money that is specified in a purchase contract to be paid by one party to the other party in the event of a breach of contract.

liquidity

Selling an asset at a price close to its true value to quickly convert it into cash.

listing

A property that has been placed on the market by a listing agent.

listing agent

A broker or a sales agent who has been contracted by a seller to list a property for sale.

listing broker

A broker who has been contracted by a seller to list a property for sale. Also called a lister or sellers broker.

listing inventories

The number of properties for sale within a given market.

live-in partnership

An arrangement in which two unrelated people purchase a home together.

live-work space

An officially designated dwelling where an occupant conducts a home-based business.

load-bearing wall

A wall that supports its own weight plus the weight of other parts of a building.

loan application

The process of filling out the basic financial information and request for a home loan.

loan application fee

A fee that is charged by the lender to cover the incidental expensed related to a loan application.

LOAN AMOUNT

The total amount of a debt excluding interest.

loan commitment

A lenders promise to supply a loan for a specific amount for a specific term.

loan officer

An official representative for a lending institute, who acts on behalf of the lender.

loan origination fee

The fee to cover the direct costs of arranging the loan.

loan term

The specified time set by a lender for repayment of a mortgage.

loan type

Loan types vary and determine the borrowing limit, down payment requirements and qualifying rules. They include conforming, jumbo, FHA and VA.

loan-to-value ratio (LTV)

The ratio for a loan is determined by the loan amount in comparison to the value of the property.

local improvement district (LID)

A district established by state law for the benefit of a specified area. Bonds are issued by the district to finance improvements, then they levy assessments on real estate in the area to repay those funds.

lock-in

A lenders commitment to guarantee a specific interest rate for a limited amount of time.

lock-in period

A period of time where a lender guarantees an agreed upon interest rate to a borrower even if the rates rise.

loft

A living space built above a larger room or a room that is not partitioned.

log cabin

A home built with rough-hewn timbers.

louvers

Slatted panels that are mounted in the upper portion of a gable wall and provide ventilation to the attic.

low density

A low concentration of housing units in a specific area.

low down-payment loan

A home loan where the borrower need only make a small down payment to obtain the financing to purchase a property.

low-documentation loan

A mortgage where only minimal verification of income and assets is required.

low-emissivity

A coating or a film that is applied between the panes of glass in a high-efficiency glazing. Also known as Low-E.

lowball offer

An offer to purchase a property that is substantially below market value.

LTV (loan-to-value ratio)

The ratio for a loan is determined by the loan amount in comparison to the value of the property.