At Budget Finance Company, we specialize in making loans to many types of natural and "Non-Natural" borrowers. Here are some of the common types of borrowers with whom we have completed mortgage transactions:

Natural Person: A human being with his/her own idenity.
Foreign National: Any person or business entity either not a U. S. citizen or incorporated in another country.
Non-Resident Alien: A person who is not a permanent resident of the U.S. but is generally taxed on income from U.S. sources. Typically a non-resident has lived in the US less than 5 years.
Partial Owner/Tenants in Common: A way of sharing ownership of property among two or more persons in which each tenant holds an undivided interest in the property. The tenants may hold interests of different sizes (e.g., 2 persons own the property; 1 holds 60% the other 40%).
Life Tenant: Refers to the real property (immovable). The life tenant (often referred to as a life estate) is granted use of the real property until that the person dies. The tenant may use the property for any lawful purpose, but may not sell the property.
Remainder Interest: A person(s) has been conveyed real property, however the use of the property will only take effect after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another at which time full title and contol reverts to the remainder.
Sub-chapter S Corporation: A form of a corporation that meets the IRS requirments to be taxed under the Subchapter S of the IRS code. This gives a corporation with 75 shareholders or less the benfit of incorporation while being taxed as a partnership. This means that any profits earned by the corporation are not taxed at the corporate level, but rather at the level of the shareholders. Thus avoiding double taxation that is inhererent with dividends of public companies.
Non-profit Corporation: A nonprofit corporation (sometimes referred to as not-for-profit) is formed as a corporation for purposes other than generating a profit and in which no part of the organizations income is distributed to its directors or officers. Nonprofits are involved in an innumberable ranges of areas relating to the arts, charaties, education, politics, religion, resarch or some other endeavor.
Foreign Corporation: A coporation conducting business in any state or states other than the state in which it incorporated. The corporation must register in the state(s) in which it intends to operate. There are many purposes for registration 2 of which are to pay taxes on the revenue generated in the state(s) where the corporation is operating and to have a designated person(s) as agents for service of legal documents.
Limited Liability Company: An LLC exists as a separate entity much like a corporation. Members cannot be held liable for the debts of the LLC, unless they have signed a personal guarantee. Most LLC adopt an Operating Agreement to provide for the governance of the Company.
Limited Liability Partnership: LLP is a form of a general partnership in which partners are statutorily relieved of all or part of their personal liability for partnership liabilities, debts and obligations. But allows the members of the LLP to take and active roll of the business of the partnership.
Partnership: This is a type of business entity in which two or more persons agree to carry on a businsess venture together. The partners share in the profits of the business There are two types of partnerships; general partnership and limited partnership.
General Partnership: A general partnership is formed when the individuals (partners) intend to work together to carry on a business activity. The distinguishing feature of this entity is that each partner is liable for all of the debts of the partnership. Each partner individually, unless prohibited in writing, can obligate the partnership without the other general partner(s) consent.
Limited Partnership: A limited partnership is a business organization with one or more general partners. The general partner(s) manage the day to day affiars of the business and assume the legal debts and obligations of the partnership. The limited partners are liable only to the extent of their investment. Limited partners have a right to the cash flow of the parntership but are not liable for the company obligations.
Unincorporated Associations: This form of organization is a contractural relationship between the individual members of an assocaition, all of whom have agreed to cooperate together for a particular purpose. This organization has no existence or "personality" separate from the individual memebers. Typically there are office holders and their duites, responsibilities and powers are are delegated to them in a formal document. However, because there is no legal entity the association itself cannot own - be vested - in property.
Religious Organization: An organization, predominately non-profit corporation, of persons who come together to conduct religigous acitivities. Generally, the organization is governed by a board of directors who oversee the upkeep of the church, synagouge, or mosque; pay the salaries of the ordained person(s) and other staff. This organization can hold property in its own name.
Conservatorship Estate: A person (Conservator) appointed by a court to care for another adult who lacks the ability to care for himself/herself (Conservatee). There are 2 types of conservators: 1) a conservator for the person is appointed to provide for the daily needs of the conservatee and 2) Conservator for the estate is appointed to handle the finacial affairs for the conservatee. In order to borrow the conservator is appointed for the person and the estate.
Guardianship Estate: A person (Guardian) appointed by a court to manage the affairs of a child (minor). The person appointed is not the parent of the child. Again there are 2 types of guardians: 1) a guardian who has custody of the child and 2) a guardain who has the power to manage the child's property (the guardian could be appointed to do both).
Probate Estate: A court appointed person,called an administrator (if there is no will) or executor (if there is a will), who then has the legal authority to pass the decedent's property to his/her heirs or devisees. The personal representative literally stands in the place of the decedent in dealing with the affairs of the deceased person.
Receivership Estate: A bankrucptcy court appointed person to take immediate control of the assets of a business. The receiver reorgainizes and manages distressed businesses and commercial real estate. The receiver is charged with either turning the business around or liquidating the concern.
Irrevocable Trust: A trust established, generally for tax purposes, which cannot be changed or cancelled once it is set up without the consent of the beneficiary. Contributions (assets put into the trust) cannot be taken out of the trust.
Revocable Trust: Also referred to as a living trust, this a flexible arrangement that can be changed or dissovled at any time. Typically the grantor (the person who puts assets in the trust) is named the trustee and retains control over the assets. Once the grantor dies the trust then becomes irrevocable and it is only after death that the assets are passed on to the beneficiaries. This is primarily used as a means to avoid probate.

Equal Housing Lender[ Privacy Policy | Licenses | Terms of Use | Notices ]