Arizona Mortgage Term N

APPLY NOW

RELATED LINKS

CREDIT REPAIR 101

FHA 101

GREEN

HOME BUYING 101

LOAN APPLICATION PROCESS

MORTGAGES 101

QUALIFYING FOR A LOAN

VA 101

ARIZONA MORTGAGE LOAN DICTIONARY N

Negative Amortization -  The gradual increase in the balance of a loan, caused by adding unpaid interest to the loan balance.  The unpaid interest is a result of monthly payments being less than the amount required to pay the interest.  Negative amortization can occur on a potential or scheduled basis:  a) Potential Negative Amortization:  Negative amortization that results from borrower optional payment caps.  b) Scheduled Negative Amortization:  Negative amortization that is scheduled to occur during the life of the loan.  

Negative Cash Flow - See Cash Flow. 

Negative Covenant - A promise not do do something, such as a restrictive covenant that prohibits detached garages. 

Negative Easement - An easement right that prohibits an owner from a use. 

Negative Fraud - Fraud resulting from failure to disclose rather than from an affirmative act. 

Negotiable Instrument - Written unconditional promise or order to pay a certain sum in money now or at a definite time in the future. 

Neighborhood - A residential or commercial area with similar types of properties, buildings of similar value or age, predominant land-use activities and natural or fabricated geographic boundaries, such as highways or rivers.  

Neighborhood Life Cycle - The period during which most of the properties in a neighborhood undergo the following three states: 1) development (growth), in which improvements are made and properties experience rising demand and value, 2) equilibrium, in which properties undergo little change; and 3) decline, in which properties become less desirable and require an increasing amount of upkeep to retain their original utility.

Net Lease - A lease under which the tenant pays all expenses including taxes and insurance and gives the landlord a net amount as rent. 

Net Listing - A listing whereby the broker receives as commission that portion of the sales price that exceeds the listing price. 

Net Operating Income - Income remaining after operating expenses are deducted from effective gross income.

Net Profit - Profit after all expenses (not including payment for debt service or taxes on the profits).

Net Spendable - See Cash Flow. 

Net Worth - The difference between total assets and total liabilities.

Net Yield -  The part of the gross yield remaining after the deduction of all charges or costs, including servicing.

NOD -  See Notice of Default.  

Nominal - 1) the rate state in the instrument. 2) A minimum quantity. 

Nominee - A new person designated to perform under a contract in the place of another.  Unlike an assignment, where the original party maintains some secondary liability, the original person is relieved totally of his/her obligations by the designation of a nominee. 

Nonconforming Use - A use existing prior to zoning that in snot in conformance with the zoning. 

Noncumulative Zoning - Zoning that allows only a specified category of use (not less-restrictive uses). 

Nondisturbance Clause - A mortgage condition by which the borrower agrees not to terminate leases (if the tenants are in compliance with the lease terms) in the event of mortgage foreclosure.

Non-freehold Estate - A leasehold interest.  

Noninstitutional Lender - Lender other than banks, S&Ls, licensed mortgage lenders, etc., such as a pension fund or private individual. 

Nonjudicial Foreclosure - Foreclosure under the power of sale provision of a mortgage or deed of trust.

Non-Owner Occupied Property -  Property purchased by a borrower not for a primary residence but as an investment with the intent of generating rental income, tax benefits and profitable resale.  

Nonrecourse Loan - A loan for which the borrower is not personally liable (no deficiency judgment is possible). 

Notary Public - A public officer authorized to administer oaths to attest or certify certain types of documents, to take depositions, and to perform certain other civil functions.

Note -  A written promise by one party to pay a specified sum of money to a second party under conditions agreed upon mutually.  Also called a “promissory note.”

Note Rate -  The interest rate on the mortgage loan.  

Notice of Cessation - A recorded notice shortening the time for the filing of mechanic's liens when work has ceased prior to completion of the improvement.

Notice of Completion - A notice filed by an owner that starts a statutory period in which mechanics' liens must be filed.

Notice of Default -  A notice recorded after the occurrence of a default under a deed of trust or mortgage.  Typically required by an interested third party that has insured or guaranteed the loan.  

Notice of Intent to Sell - States intent to sell defaulted property at public auction to the highest bidder.  Must be posted and published according to specific regulations.  

Notice of Nonresponsibility - A notice filed an owner to protect the property from liens for work authorized by another person, for example, a tenant.  

Notice to Quit - A statutory notice given by a landlord to the tenant to vacate the premises. 

Novation - The substitution of one agreement for another, or the substitution of parties to the agreement. 

Nuisance - A use of property that interferes with the quiet enjoyment by others of their properties.  An abatement action can be taken to stop the nuisance.