Glossary of foreclosure terms: B

"B" paper: Lender's term for loans made to borrowers who are not as well-qualified as those who get "A" paper. See also subprime.

balance sheet: Written description of assets and liabilities, with values and calculations to ultimately determine net worth.

balance-transfer fee: Money charged by a credit card company for transferring a debt balance from elsewhere.

bankruptcy: Legal process in which a party declares inability to pay debts, and willingness to allow a court-appointed trustee to administer its finances. In exchange, the party receives relief from some kinds of debt.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA): Federal law that gave bankruptcy courts and trustees greater oversight and new responsibilities. Notable among them are means testing to prevent high-income people from filing for Chapter 7 bankruptcy when the court determines they can afford a repayment plan under Chapter 13 bankruptcy.

beneficiary: In a three-party loan such as a promissory note and deed of trust, the beneficiary is the party who receives loan payments every month; that is, the lender.

blended rate: Interest rate calculated by combining several rates into one. For example, someone who owes $1,000 at 6 percent and $1,000 at 10 percent would owe $2,000 at a blended rate of 8 percent.

borrower information packet: Mailing that reminds the borrower of loan terms and explains how to avoid foreclosure, sent by the lender about a month after the first missed payment.

bottom portion: For those who owe more than 80 percent of a property's loan-to-value ratio, the part that equals the first 80 percent. For example, a home with a value of $100,000 and loans owing of $95,000 would have a bottom portion of $80,000 and a top portion of $15,000.

Broker's Price Opinion (BPO): Estimate of a property's value, given by a real estate broker. See also appraisal.

bundle of rights: Term commonly used to describe ownership of real property. The "sticks" in the bundle are easy to remember with the acronym PUEDE: the right to Possess, Use, Enjoy, Dispose of (i.e., sell or give away), and Encumber (use to secure loans and other obligations).