Copy of `Understanding forclosure - Foreclosure Terminology`

The wordlist doesn't exist anymore, or, the website doesn't exist anymore. On this page you can find a copy of the original information. The information may have been taken offline because it is outdated.

Understanding forclosure - Foreclosure Terminology Category: Economy and Finance > Foreclosure Date & country: 21/01/2008, UK Words: 583

Realtor
Is a designation that is given to an agent or broker who's a member of the National Association of Real Estate Brokers.

Recasting
Means to Restructure a loan with a new interest rate and term; this can be the same loan from the same lender.

Receivership
Is what happens when the FDIC takes over a bank to liquidate its assets; REO is taken over by FDIC's liquidation division; existing contracts with the institution can be voided at the option of the FDIC.

Reconveyance
Is the lenders action of transferring a property back to a borrower when the borrower completely pays off their mortgage.

Recorder
Is the public official responsible for keeping records of all real estate transactions.

Recording
Is the act of filing all property-related documents into the public record.

Recording fee
Are the fees that charged by real estate agents for transferring the sale of property into the public record.

Recourse
Is the Right to claim against a prior owner of property or note.

Redemption
Is the Right of the mortgagor to a property by paying debt before sale at foreclosure; the right of the owner to reclaim property after its foreclosure sale to settle claims for unpaid taxes.

Redlining
Is the illegal practice by a bank or insurance company denying credit or insurance to people based on prejudices.

Refinance
The process of replacing an old loan with new one, usually at lower interest rate.

Refinancing
Is the process of redoing a mortgage in favor of a new mortgage with better terms.

Regression
Is the belief that the value of one property is adversely affected by the proximity of a lesser-quality property.

Regulation Z
Is a federal code issued under the Truth in Lending Act that requires a borrower be advised in writing of all the costs associated with the credit portion of a financial transaction.

Rehabilitation mortgage
Is a type of mortgage provided to cover the costs of repairing and improving a property for the purpose of its resale.

Release clause
Is a provision within a purchase contract that allows the seller to continue marketing the property and to accept other offers.

Release of liability
Is a document that relieves an individual`s obligation to pay loan; and may be obtained when the buyer takes over payments on the seller's old loan, if the buyer meets the lender's standards for income and creditworthiness.

Relief
Are various types of special payment plans or assistance that are offered to borrowers who have missed payments. This enables a borrower to bring their loan current.

Relocation benefits
Are employer paid benefits like the coverage of moving costs, reimbursement for temporary housing and transportation, real estate fees and discounted loans.

Relocation company
Is a firm that administers all the aspects for the relocation of new employees from one location to another.

Remaining balance
Is the dollar amount of unpaid principal on a home loan.

Remaining term
Is the original loan term minus the number of payments made.

Removal
Is the process of transferring a case from state to federal court.

Rent loss insurance
Is an insurance policy covering the loss of rent or rental value in the event of a fire or other damages that render the property uninhabitable.

Renters insurance
Is a policy for renters covering the replacement value of possessions.

REO
Is property that is acquired by a lender through foreclosure and held in inventory.

Repayment plan
Is the lenders negotiated repayment plan with a borrower falling behind on mortgage payments; this can be used as an alternative to going to court.

Replacement cost
Is the cost of rebuilding a structure to the original specifications.

Replacement reserve fund
Is money that is set aside from a homeowners assessments and used to replace common property in a planned developments community room.

Repossess
A lender may take back a property if the borrower fails to make their mortgage payments as agreed.

Request for notice
Is a recorded document requiring a trustee to send a copy of a Notice of Default or Notice of Sale concerning a specific deed of trust in foreclosure to the person who filed the document.

Request for notice of default
Is a document that under statutory provisions allows certain parties to request and be entitled to notification of default.

Resale value
Is a properties future value which might be affected by the surrounding neighborhood, school district, and economic and house market conditions.

Rescission
Is the cancellation of a contract by law or the consent of the parties involved.

Reserve fund
Is money set aside by a homeowners association to be used for major repairs or improvements.

Restriction
Is any limitation on the use of a property.

Restructured loan
Is a newly negotiated loan.

Return on investment
Is the amount of profit a property generates.

Reverse mortgage
Is a type of loan available only to older, equity-rich owners. Repayment is not required until the borrower sells the property.

Right of first refusal
Is an agreement by a property owner giving another individual the right to buy or rent the property before it gets listed on the open market.

Right of redemption
Is a borrower's right to reacquire property that is lost due to a foreclosure.

Right of survivorship
Is the opportunity for a surviving joint owner to take over the interests of a deceased joint owner;is a distinguishing feature of joint tenancy or tenancy by the entirety.

Right of Way
Is the right to pass over property owned by another individual.

Right to rescission
Is a provision in the federal Truth in Lending Act that allowing borrowers to cancel certain types of loans within three days of signing.

Riparian rights
Is an owner`s right to use a river, stream, or lake bordering their own property.

Rollback
Is a limitation on the annual assessed value increases or a reduction in the amount of property tax paid.

Rural Housing Service
The U.S. Department of Agriculture financial aid to farmers and certain other borrowers in rural properties when other funding options are not available to them.

Sale-leaseback
Is a real estate transaction where the buyer leases a property back to the seller for a specified period of time. Also known as a seller rent-back.

Sales concession
Is a cost paid by the seller, that is usually paid by the buyer.

Sales contract
Is a contract signed by the buyer and seller providing the details and terms of the purchase.

Savings and Loan Association
Is a depository financial institution, federally or state chartered, that obtains the majority of its deposits from consumers and holds the majority of its assets as home mortgage loans.

Scire facias
Is a court order to a borrower requiring them to attend a hearing and show cause why foreclosure should not be authorized.

Second deed of trust
Is the subordinate position to another deed of trust securing the same parcel.

Second lien
Is a simple loan with a subordinated security structure or no security at all, meaning that the borrower grants another provider of a finance instrument priority over a settlement of owed monies in case of an event of default.

Second mortgage
Is a second loan placed upon a property.

Secondary mortgage market
Are packaged home loans resold as securities to investors.

Secured loan
Is a loan that is backed by some form of collateral.

Security
Is a piece of property designated as collateral.

Seller carry-back
Is an agreement where the seller provides the financing for the purchase of a home.

Seller financing
Is where the seller allows the borrower to use a portion of the equity in the property to finance the purchase.

Seller rent-back
Is a real estate transaction where the buyer leases the property back to the seller for a specified period of time. Also considered a sale lease-back.

Seller take-back
Is an agreement where a seller provides financing for the purchase of a home.

Sellers market
Is a real estate market where the sellers have the advantage and multiple offers are a common occurrence.

Selling agent
Is a real estate broker or salesperson that writes up the offer to purchase property for the buyer, but may not be the buyer`s regular representative.

Servicer
Is a firm that collects mortgage payments and manages a borrowers escrow accounts.

Servicing
Is the process of administering a mortgage loan to include collecting payments, maintaining insurance, and undertaking special measures such as workouts and foreclosures when necessary.

Settlement or closing fees
Are fees paid for the completion of the written instructions for the agreement between the buyer and the seller and the lender.

Settlement statement
Is a document providing the details regarding what payments have been made and to whom.

Severalty
Is the ownership of real property by one individual. Also considered sole ownership.

Severance
The changing of an item from real property to personal property by detaching it from the land.

Shared-appreciation mortgage
Is a type of loan where more than one party share in the borrowers profits when the home is sold.

Shared-equity transaction
Is a transaction where there are two buyers purchasing a property; one will be the resident on the property and the other will be an investor.

Short payoff
Is a lenders agreement to compromise a debt. Also is called short sale.

Simple assumption
Is a type of loan assumption where the original borrower remains as liable as a secondary borrower should the original borrower default.

Single agent
Is an agent that represents the buyer or the seller in a transaction.

Special assessment
Is a specific amount of money homeowners pay to a homeowners association for the purpose of performing public improvements.

Special deposit account
Is an account that is required for rehabilitation mortgages to hold and disperse the restoration and remodeling funds to the contractors as the work is completed.

Speculation home
Is a home built without a buyer.

Square footage
Is the number of square feet of livable space in a building.

Starter home
Is a first home generally of a lower-than-average price.

Stay
Is a judicial order that forbids some action until an event occurs or the order is lifted.

Step-rate mortgage
Is a type of home loan that allowing a gradual increase in the interest rate during the first few years.

Stigmatized property
Is a property having an undesirable reputation because of an event that had occurred on or near the site.

Straight purchase
Is a transaction where a buyer gives the builder a deposit to begin building, and the balance of payment when the sale of the house closes.

Strict foreclosure
Is a legal premise that gives a lender ownership to property, allows the borrower to be evicted for nonpayment, and gives the lender full and complete title by waiting a set time period until the borrower's right to redeem ends.

Subcontractor
Is a specialty construction company hired by the general contractor to perform a specific task.

Subdivision
Is the division of a large piece of property into smaller parcels.

Subject-to
Is the transfer of rights to pay a debt from one party to another, the original party remains liable for the debt if the second party defaults.

Subordinate clause
Is a statement in a mortgage giving priority to a mortgage that was taken out at later date.

Subordinate loan
Is a second or third mortgage.

Subrogation for mortgage insurers
Is the right of a mortgage insurance company to file suit and recover losses due to borrower`s default from the money the borrower already paid to lender.

Subsequent rate adjustments
Is the adjusted interest rate with an adjustable rate loan (ARM) that may be adjusted at regular intervals.

Subsequent rate cap
Is the maximum amount an interest rate may increase at each regularly scheduled interest rate adjustment period for an adjustable rate loan (ARM).

Summary judgment
Is a legal procedure where one side wins a lawsuit without a trial by showing the case involves no material fact issues, but only legal issues that can be decided by the judge; if judge then agrees, one side wins by a summary judgment.

Survey
Is a precise measurement of a piece of property by a licensed land surveyor.

Tap fees
Is the fee that charged by most companies for hooking up the utilities.

Tax deduction
Is a tax break offered by the government.

Tax lien
Is a lien placed against a property for nonpayment of taxes.

Tax sale
Is the public sale of a property by the government for nonpayment of taxes.

Tax service fee
Is a fee collected to set up a third-party monitoring system for a borrowers property tax payments so the payments will be made on time and to prevent tax liens from being put in place.