Title Insurance Dictionary-Glossary

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Rate Lock
A way you can establish that the interest rate on your loan remains the same between the time of your application, and when you qualify for the loan. When applying for a loan, you can lock the interest rate for a specific amount of time; depending on the length of the lock, this feature may cost as much as 1% of the total value of the loan, although often it is offered free of charge by the lender.

Reaffirmation Agreement
Debtor who has filed bankruptcy reconfirms the promise to pay a debt after filing bankruptcy.

Real Estate
Land and anything permanently affixed to the land, and those things attached to the building.

Real Estate Investment Trust (REIT)
An investment vehicle established for the benefit of a group of real estate investors and managed by one or mire trustees who hold title to the assets for the trust and control its acquisitions and investments.

Realtor
A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.

Reasonable Investigation
Statutory process in some foreclosure court jurisdictions mandating the procedures required to certify to the court that the defendant (mortgagor) cannot be found for the purpose of serving (hand delivering) a notice of a complaint in foreclosure, thereby permitting alternate service, usually publication of the complaint in an approved newspaper or nailing it to the door of the property which is called Posting.

Reassessment
The process of updating the understood value of a property for tax purposes.

Recision
The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security.

Reconciled Value
The Fair Market Value of a property as determined by the weighted analysis of different types of opinions of value such as an Appraisal, BPO (Broker's Price Opinion), CMA (Comparative Market analysis), Property Inspections, Electronic Data, and other methodology such as interviews with the producers of these products and corporate field inspections.

Recording
The noting in the registrar’s office of the details of a property executed legal document, such as a deed, mortgage, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.

Recording Fees
Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.

Redlining
The practice of restricting or denying mortgage loans for certain areas in a discriminatory pattern.

Refinance
Obtaining a new mortgage loan on a property already owned. Often to replace existing loans on the property.

Reinstatement
The curing of all defaults by a borrower; the restoration of a loan to current status through payment of arrearages.

Reissue Rate
A discounted rate for title insurance when the title was previously insured with an owner's title insurance policy issued within the last ten years.

Remainder
An interest in land that is postponed until the termination of some other interest such as a LIFE ESTATE. Compare, FEE SIMPLE.

Renegotiable Rate Mortgage
A loan in which the interest rate is adjusted periodically. See adjustable rate mortgage.

Repurchase Agreement
An agreement to sell mortgage-backed securities to a party with a simultaneous agreement by the purchaser to resell them to the original party at a specified future date and price.

RESPA
Short for the Real Estate Settlement Procedures Act. RESPA is a federal law that allows consumers to review information on known or estimated settlement cost once after application and once prior to or at a settlement. The law requires lenders to furnish the information after application only.

Retire a Debt
When you pay off your home loan completely, thereby fulfilling your obligation under the loan contract.

Reverse Annuity Mortgage (RAM)
A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loam is paid in full. Also called a release of mortgage.

Reverse Repurchase Agreement
An agreement to purchase mortgage-backed securities from a party with a simultaneous agreement to resell them at a specified future date and price.

Reverse Repurchase Agreement
An agreement to purchase mortgage-backed securities from a party with a simultaneous agreement to resell them at a specified future date and price.

Reversion
A provision in a conveyance that the land will return to the grantor upon the happening of an event or contingency. Compare, FEE SIMPLE.

Riparian Rights
The rights of an owner of land adjacent to water.

Rollover
Renewal of a loan at the time of maturity; Reinvestment of the proceeds of the sale of a housing unit into another, which defers payment of the tax on the gain from the sale.

Rollover Mortgage
A mortgage that provides for renegotiation of the interest rate and payment terms, typically at each five-year period of its term. Sometimes referred to as a Canadian rollover mortgage.

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