Federal National Mortgage Association (FNMA or Fannie Mae)
A private corporation dealing in the purchase of first mortgages at discounts.
The maximum possible estate one can possess in real property; absolute ownership. It is of indefinite duration, freely transferable and inheritable.
FHA - The Federal Housing Administration
An agency of the federal government which insures private loans for financing of new and existing housing and for home repairs under government approved programs.
FHLMC (Freddie Mac) - Federal Home Loan Mortgage Corporation
An affiliate of the Federal Home Loan Bank, which creates a secondary market in conventional residential loan and FHA and VA loans by purchasing mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.
A mortgage that has priority as a lien over all other mortgages.
Fixed Rate Mortgage
A mortgage having a rate of interest which remains the same for the life of the mortgage.
A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.
Forfeiture of Title
A common penalty for the violation of conditions or restrictions imposed by the seller upon the buyer in a deed or other proper document. For example, a deed may be granted upon the condition that if liquor is sold on the land, the title to the land will be forfeited (that is, lost) by the buyer (or some later owner) and will revert to the seller.
In real estate, revealing all the known facts which may affect the decision of a buyer or tenant. A broker must disclose known defects in the property for sale or lease.