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GLOSSARY
Condemnation
In the legal sense, condemnation is government seizure of private property, either for public use, or because the property is unsafe. Property can be seized for public use under the powers of eminent domain; when this happens, the owner receives fair compensation in return.
Conditional commitment
A promise by a lender to authorize a loan if the borrower meets certain requirements in the application process.
Condominium
It is a type of ownership in a real estate project, wherein each unit owner has a title to a unit in the building or property. He has an undivided interest in all common areas and in some the exclusive use of certain limited common areas. See further Condominium conversion
Condominium conversion
When an individual changes the ownership from that of an exisitng project which is often a rental one to the condominium form of ownership.\n\nSee further Condominium
Condotel
A condotel is a residential complex of individually owned units that are rented out as vacation properties or hotel rooms. Condotels have the amenities of a hotel, such as a registration desk and daily cleaning service. Owners have the option to earn rental income by placing their unit in the hotel program.
Conduit borrower
A conduit borrower acts an intermediary for another borrower that doesn't meet the credit qualifications of a lender. The conduit borrower takes out the loan and then relends the funds to the second borrower, usually at a profit.
Confirmation
A confirmation is a formal affirmation of an agreement. In investing, completed buy and sell transactions are documented with confirmations, which specify the date of the trade and the price, fees, and settlement terms.
Conforming loan
A conforming loan is a proposed debt facility that meets the lender's standards. Such standards might specify the collateral, the borrower's qualifications, the loan amount, and the repayment terms. Pertaining to real estate loans, conforming mortgages are those that meet federal standards. These loans are eligible for resale to Fannie Mae or Freddie Mac.
Conforming loan limit
A conforming loan limit is a cap on the dollar amount of a loan. Specific to mortgages, the conforming loan limit is an amount set annually by the Office of Federal Housing Enterprise Oversight (OFHEO). Loans made in excess of the limit are called jumbo loans, and aren't eligible for repurchase or guarantee by Fannie Mae and Freddie Mac.
Conforming mortgage
A conforming mortgage meets the requirements to be eligible for purchase or securitization by one of the government-sponsored enterprises such as Fannie Mae, Freddie Mac and Ginnie Mae. These requirements include the size of the loan, type and age. These requirements change from year to year and vary by state.
Consent judgment
A consent judgment is a binding agreement between two parties of a lawsuit that's made prior to the completion of litigation. Once a judge approves the agreement, the terms of it are legally enforceable.
Conservative investing
Conservative investing describes a strategy for purchasing securities that exposes the portfolio to as little risk as possible. Conservative investing might involve the purchase of income securities, such as Treasury bonds, or money market funds. This strategy can be implemented to preserve the value of the portfolio against inflation, but will not produce significant growth.
Conservatorship
Conservatorship describes the relationship between one person who's unable to make legally binding decisions. and another person who's been appointed to manage the first person's affairs. The appointed person is called the conservator.
Consideration
Consideration is something that has value, such as money, property, or services. The term is normally used in reference to a sales contract, where one party provides consideration in return for the item or property purchased.
Consolidated Omnibus Budget Reconciliation Act - COBRA
Consolidated Omnibus Budget Reconciliation Act, or COBRA, is federal legislation giving qualified former employees the right to continue their health coverage under a former employer's group health plan for 18 months. The term COBRA refers either to the legislation itself, or to the actual health plan (as in COBRA insurance).