Balance Sheet: A document showing the financial situation--assets, liabilities, and net worth--of a company at a specific point in time.

Balloon Mortgage: A short-term, fixed-rate loan with low payments for a set number of years and a large balloon payment of the remainder of the principal due at the end of the term.

Bankruptcy: Proclamation by a court of an individual’s (or organization’s) state of insolvency, or inability to pay debts. Petition may be brought by an individual or creditors, with a goal of orderly and equitable settlement of obligations.

Bearer: The legal owner of a piece of property.

Bequest: A gift of personal property by will.

Bill of Sale: A document by which one transfers ownership of goods to another.

Bi-weekly Mortgage: A payment plan under which the borrower pays one half of a monthly payment every two weeks.

Blanket Mortgage: A mortgage covering at least two or more pieces of real estate, both of which together serve as collateral for the loan.

Bona Fide: In good faith.

Bond: A document representing a right to certain payments on underlying collateral.

Borrower (Mortgagor): An individual who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full

Breach: A violation of terms of any legal obligation.

Break even point: Point at which total income equals total expenses.

Bridge Loan: A type of mortgage financing between the termination of one loan and the start of another loan. For example, a mortgage secured by the borrower's present home (which is usually up for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as a "swing loan."

Broker: An individual who assists in arranging funding or negotiating contracts for a client but does not loan money himself.

Building Code: Local regulations that specify minimum structural requirements for design of, construction of, and materials used in a home or office building. Building codes are based on safety and health standards.

Buydown Account: An account in which funds are held so that they can be applied as part of the monthly loan payment as each payment comes due during the period that an interest rate buydown plan is in effect. For example, if a seller agrees to help reduce a buyer's monthly payment during the first year of a loan, the seller may put money in a buydown account which is then paid to the lender each month to reduce the buyer's monthly payment. This is more commonly done through a buydown paid directly to the lender at closing.

Buy-down: A situation in which the seller contributes money, allowing the lender to give the buyer a lower rate and payment, usually in exchange for an increase in sales price.

Buyer’s Broker: An agent hired by a buyer to locate a property for purchase and to represent the buyer in negotiations with the seller’s broker.

Buyers’ Market: Market conditions that favor buyers. With more sellers than buyers in the market, buyers have ample choice of properties and can negotiate lower prices.