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GLOSSARY
Possession
When all of the paperwork is complete and the closing arrangements are finalized, the owner is given keys to the house.
Postnuptial agreement
A postnuptial agreement is a legal arrangement between a husband and wife that specifies how their property is to be distributed in a death or divorce. Normally, both husband and wife must retain separate legal representation.
Pour-over will
A pour-over will is a legal document that expresses an individual's desire to have all of his assets placed in a pre-existing trust upon his death. The trust itself is the primary vehicle for distribution of the estate's assets, but the pour-over will provides an added mechanism for directing the asset distribution.
Power of attorney
A legal document that authorizes one person to act on behalf of another. There can be a General POA granting compete authority or a specific POA for a specific act or for a certain period of time.
PPO
A PPO is a type of healthcare coverage that combines the characteristics of fee-for-service and HMO plans. The insured has the option to choose healthcare providers, but receives more expansive coverage when visiting providers are approved by the plan.
Pre-admission authorization
Pre-admission authorization is permission to begin an in-patient stay or procedure, provided to an insured by an insurance provider. In some healthcare policies, the insured must receive pre-admission authorization or coverage won't be provided.
Pre-approval
This term denotes that the borrower gets his home loan application with debt, income and savings proof reviewed and approved by an underwriter before finalizing any property. The pre-approval is done taking into account certain loan amount and estimating the interest rates and property taxes, insurance etc. at the time of taking the loan. It applies only to the borrowe, but once the property is chosen, it should also meet the underwriting guidelines of the lender.
Pre-approval letter
The official letter stating how much money a borrower is qualified for based on interest rates and credit history.
Pre-approved
Pre-approved describes credit card offers that result from cursory credit screenings. An individual who receives a pre-approved offer isn't guaranteed to receive the credit card account. If, for example, the individual states his income as zero, the card application is likely to be declined, regardless of the pre-approved status.
Pre-computed loan
A pre-computed loan is a type of auto loan facility. It's structured with a standard amortization table, such that the total interest is determined before the loan is funded. This total interest is added to the loan amount, and your payments are applied to the combined balance. When a borrower agrees to a pre-computed loan, he's agreeing to pay back the total interest and principal, even if the loan is paid off early.
Pre-foreclosure sale
When the borrower sells the property for less that what is owed on the loan to avoid foreclosure. This sale will fulfill the borrower's debt.
Pre-qualification
Information given to the loan officer about the borrowers position on his debt, income and savings before granting of a loan. The loan officer may or may not ask for the borrower's credit report.
Pre-sold home
A home which is sold before it is built.
Preapproval letter (mortgage)
A preapproval letter (mortgage) is a document produced by a mortgage lender or broker that provides an estimate of how much an individual would be able to borrow in the current interest rate environment. A preapproval letter can be submitted with an offer to make the seller feel more comfortable about the buyer's prospect of obtaining financing.
Predatory lending
Predatory lending describes the practice of dishonest or unethical conduct by loan brokers and lenders for the purposes of persuading borrowers to take inappropriate, over-priced loans. The federal government and some state governments have laws prohibiting predatory lending.