Balance sheet: A financial statement that shows assets, liabilities, and
net worth as of a specific date.
Balloon mortgage: A mortgage that has level monthly payments that will
amortize it over a stated term but that provides for a lump sum payment to be due
at the end of an earlier specified term.
Balloon payment: The final lump sum payment that is made at the maturity
date of a balloon mortgage.
Bankrupt: A person, firm, or corporation that, through a court proceeding,
is relieved from the payment of all debts after the surrender of all assets to a
Bankruptcy: A proceeding in a federal court in which a debtor who owes
more than his or her assets can relieve the debts by transferring his or her assets
to a trustee.
Basis: The starting point from which gains, losses, and depreciation
deductions are computed. Generally, it is the acquisition cost or purchase price
of an asset. See also Adjusted Basis.
Before-tax income: Income before taxes are deducted.
Beneficiary: The person designated to receive the income from a trust,
estate, or a deed of trust.
Bequeath: To transfer personal property through a will.
Bill of sale: A written document that transfers title to personal property.
Biweekly payment mortgage: A mortgage that requires payments to reduce
the debt every two weeks (instead of the standard monthly payment schedule). The
26 or 27 biweekly payments are each equal to one-half of the monthly payment that
would be required if the loan were a standard 30-year fixed-rate mortgage, and they
are usually drafted from the borrower’s bank account. The result for the borrower
is a substantial savings in interest.
Blanket insurance policy: A single policy that covers more than one
piece of property (or more than one person).
Blanket mortgage: The mortgage that is secured by a cooperative project,
as opposed to the share loans on individual units within the project.
Bona fide: In good faith, without fraud.
Bond: An interest-bearing certificate of debt with a maturity date.
An obligation of a government or Boot: Money or non Like-Kind Property
that is received as consideration in connection with a Like-Kind Exchange.
Breach: A violation of any legal obligation.
Bridge loan: 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.
Broker: A person who, for a commission or a fee, brings parties together
and assists in negotiating contracts between them. See
Business corporation: A real estate bond is a written obligation usually
secured by a mortgage or a deed of trust.
Buyer in a like-kind exchange: The person acquiring the Relinquished
Property in a Like-Kind Exchange.