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Real Estate Lien Note
Refers to a legal document specifying terms of a borrower's loan, like the time given to repay it, an interest rate,
monthly amounts and other provisions to address a borrower's failure to repay on a timely basis.
Real Estate Owned (REO)
Property acquired by a lender through foreclosure and held in inventory; commonly referred to as REO.
Realtor®
Sales agent who is a member of the National Association of Realtors subscribing to its ethical standards.
Recasting
Restructuring a loan with a new interest rate and term. It may be the same loan from the same lender, but the
terms change. FHA has a formal procedure to recast loans to assist home buyers to stay in their houses.
Receivership
After a bank is taken over by FDIC, it may be placed in receivership to liquidate its assets. The employees are
fired and the assets shipped off to be sold at auction. The real estate is turned over to the RTC or the FDIC's
liquidation division. Existing contracts with the institution in receivership are voidable at the option of the FDIC.
Recording
The act of writing or entering in a book of public record instruments affecting the title to real property.
Recourse
The right to claim against a prior owner of a property or note.
Redemption
The right of a mortgagor to redeem property by paying a debt before sale at foreclosure; the right of an owner to
reclaim his or her property after it has been sold to settle claims for unpaid taxes.
Refinance
The process of replacing an old loan with a high interest rate with a new one, usually at a lower interest rate.
Release Clause
A clause included in a blanket mortgage that gives the owner of the property the privilege of paying off part of the
debt, and thus freeing part of the property from the mortgage.
Release Of Liability
The document that relieves a person who is obligated to pay a loan of any further obligations. It may be obtained
when a buyer takes over the payments on the seller's old loan, provided the buyer meets the lender's standards for
income and creditworthiness. If granted, the release of liability means the seller will not be responsible if the buyer
fails to pay.
Relief
Various types of loans, depending on their insurers (FHA, PMI companies, etc.) or their owners (FNMA, FHLMC),
will offer various types of special payment plans or other assistance for borrowers who have missed payments. If it
appears that the borrower can bring the loan current, the lender can allow a period of reduced payments with the
difference made up at a later time during the loan. The lender could also assist with an early sale.
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Removal
The process of transferring a case from state court to federal court.
Repayment Plan
A plan for repaying missed payments over time.
Request For Notice Of Default
A document that under statutory provisions, allows certain interested parties to request and be entitled to
notification of a default.
Resolution Trust Corporation (RTC)
A government-chartered corporation whose primary function is to manage and liquidate the assets of S&Ls that
have lost too much money and been taken over and shut down by the FDIC. The Resolution Trust Corporation was
created by FIRREA. It is probably the largest owner of real estate in the world.
Right of First Refusal
Right given to a party to buy a property on priority basis.
Right Of Redemption
Right granted, in some states, to the owner to recover property sold after a foreclosure within a certain period
of time after the foreclosure sale.
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Right Of Rescission
The right to back out of a contract. Also known as a 'weasel clause.'
Right Of Survivorship
Right of the surviving joint owner to succeed to the interests of the deceased joint owner. This right is a
distinguishing feature of a joint tenancy or tenancy by the entirety.
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