Quit Title — A legal action to remove an item that clouds a property title.

Quit Claim Deed — A deed of transfer that releases any title, interest, or claim enjoyed by the debtor.

Rate – The percentage of interest on a loan.

Rate Cap – A check on how much an interest rate can change, either per adjustment period or over the life of a loan.

Reaffirm — A debtor has the opportunity to waive the discharge during bankruptcy proceedings. Generally, the creditor and debtor have the same rights and liabilities with reaffirmation that each possessed previous to the bankruptcy filing.

Real Estate Owned (REO) — Property acquired by a lender after it has gone to auction.

Real Estate Settlement Procedures Act (RESPA) – A federal law outlining the rules for proper disclosure of fees and other information related to residential real estate transactions.

Recent Balance – The most recent balance due on a credit account, as determined by the creditor.

Recent Payment – The most recent amount paid on an account, as determined by the creditor.

Recorder — A public official that oversees all records of real estate transactions.

Redemption Period — The time allotted to the mortgagor to reclaim his/her property after it has been sold at an auction. Not all states have a redemption period.

Refinancing – The process of paying off an existing loan by securing a second loan with a more favorable interest rate or payment terms.

Released – A notification that a lien has been satisfied in full.

Relief from Stay — A creditor can request the judge to lift an automatic stay and permit some action against the debtor or the estate’s property. If the motion is granted, the participating party able to take whatever action is allowed by the court. For example, absolute relief will allow the creditor to foreclose on property in this case.

Repayment Fee – The lender charge to the borrower at the onset of repayment. This fee is based on the outstanding loan balance at the time repayment starts.

Repayment Period – When referring to a line of credit, this is the time in which the borrower must pay back his or her advances. With a home equity line of credit, this period follows the draw period.

Report Number – A number associated with each individual credit report according to each credit bureau.

Reported Since – The starting date that each creditor begins reporting each account on a credit report.

Repossession – When a creditor takes possession of property that is regarded as collateral in a loan contract for which the borrower has become delinquent.

Requested Loan Amount – The principal amount of a loan, excluding interest.

Rescission – Some real estate-secured transactions involving refinancing a primary residence allow applicants three business days to cancel the transaction. This cancellation of the contract is called rescission.

Responsibility – Indicates person responsible for an account; options include single, joint, co-signer, etc.

Revolving Account – Credit that is available to a borrower, capped by a predetermined maximum limit, as long as a borrowed makes regular payments.

Revolving Line of Credit – A credit that allows up borrowing to the credit limit amount to be re-borrowed after its repaid, such as a home equity line.

Risk Scoring Models – A numerical assessment of a borrower’s credit worthiness. This tool is devised and used by credit grantors to calculate future payment patterns.

Sales Contract — A contract in which a buyer and seller agree to terms of sale of a property.

Satisfied – If a consumer has paid all money he/she owed, the public record item is recorded as “satisfied.”

Schedules — A debtor must describe a required list of all of his/her of assets and liabilities to begin a bankruptcy case (collectively called the schedules)

Secondary Market – The market in which lenders and investors buy and sell existing mortgages or mortgage-backed securities.

Second Mortgage – The term for a home loan that is acquired after the primary mortgage, such as a home equity loan or line of credit.

Secured Credit – Loan in which some type of collateral, such as a property or a car, has been offered.

Secured Credit Card – A credit card in which the borrower pays a deposit to the creditor to be used as collateral in the event the borrower fails to pay the future balance of the credit card.

Secured Debt – A debt linked to collateral that a creditor can seize if the debtor does not pay a loan.

Savings Rate – A yearly percentage of return received on your investments. Also called the rate of return.

Secured Loans – Loans involving real property offered up as collateral for a loan as opposed to income.

Security – Property that a borrower offers as collateral for the term of a loan. If a borrower does not repay the loan, the creditor may seize the property through certain procedures.

Security Alert – Statement that notifies consumers that they may be a victim of fraud. The item remains on file for 90 days and asks creditor to call for proof of identification before granting credit.

Security Interest – The legal term for the process in which an owner allows a lender to use his or her property as collateral for repayment of a debt to the owner or another borrower.

Seller’s Market – A term denoting a time when a market’s demand for homes exceeds supply.

Service Charge – Additional loan fees over and above principal and interest. Can be related to processing, administration or any number of services.

Service Credit – An agreement with service provider for regular service with the provision of regular payment.

Servicer – The entity – which may be different from your lender – in charge of the administration of your loan.

Settle – To reach agreement with a creditor to repay a portion of the original debt.

Settlement – A scheduled date, time and place for all of your loan documents to be signed, dated and notarized.

Settlement Costs – These fees – attorneys’ fees, mortgage filing and preparation, taxes, title search, and insurance – are paid by a borrower at or just prior to a loan’s closing. Other closing costs can include the expenses arising from obtaining a loan and/or costs associated with transferring ownership of collateral from the seller to the buyer. Closing costs vary, but are generally between 2% and 6% of the mortgage.

Sheriff’s Sale — If you fail to pay property taxes, the city can foreclose on your property through a Sheriffs Sale. Some cities use this maneuver if you do not pay taxes after one year while other cities may wait for up to three years or more before utilizing this option. Any creditor or lien holder is able to use this option once you have defaulted on a loan. However, overdue taxes have first priority, followed by first, second, etc. mortgages, and then any other liens.

Short Sale — A compromise sale or short sale means selling your home with a foreclosure notice for a price at a lower market value. If you need to pursue this course of action, it is advantageous to select a knowledgeable real estate professional to maximize the sale.

Simultaneous Closing — This term describes two closings occurring at the same time. This is a creative technique used to when traditional financing is not an option.

Single-Family Residence (SFR) – A detached individual property that doesn’t share common areas with other properties, or walls or a roof, etc. A SFR can be part of a subdivision or planned unit development (PUD).

Status – An item that indicates the current status or state of the account.

Subject to — The term refers to the transfer of rights to fulfill a debt from one party to another, with the original party remaining liable for the debt if the second party is not able to satisfy the debt.

Survey — The process by which a parcel of land is measured.

Tax Deed — A type of deed used to transfer title after the property is sold at an auction for nonpayment of taxes.

Tax Lien — A lien on a property under the authority of state or local government that may be related to the nonpayment of taxes.

Tax Rate – Your income tax obligation, as a percentage of your income.

Tax Savings – Savings realized through itemization of taxes, mortgage interest, property taxes, etc.

Tenant — Someone that pays rent to occupy or otherwise use a property.

Tenant at Sufferance — A tenant who has his right to occupy a property terminated and who continues to occupy the premises after the right has been person who after rightfully being in possession of a rented premises continues to live in that premises after his right has been withdrawn.

Tenant at Will — A person who lives or otherwise occupies a property with the owner’s permission.

Term – The time required to pay off a loan.

Third-Party Collectors – Those who are contractually obligated to who obtain debts for a credit department or credit company, also known as a collection agency.

Third-Party Fees – These are costs associated with non-lender items, such as appraisal, credit report, title and flood certifications.

Title – The legal evidence of property ownership.

Title Company — Firms that examine properties to make sure that the title to a particular property is free of any entanglements in addition to offering title insurance.

Title Insurance – Insurance that protects an interested party, either the owner or the lender, against defects that would affect legal ownership of the property.

Title Report — A report that details the current state of a property title.

Title Search – A study to determine legal ownership and all potential liens.

Torrens Title — A system of title organization in each state that lists all mortgages, judgments, and liens recorded on each property.

Total Cash Required to Close – The grand total of all closing costs, points, prepaid expenses, down payment and any other fees or adjustments. This amount is due at closing.

Total Housing Expense – The grand total of everything you will pay to own your new home. This number is used in conjunction with the cost benefit analysis to determine if a loan is right for you or not.

Townhome – A residence that shares common walls and/or areas with other dwellings.

Tradeline – An entry posted by a lender to a consumer’s credit report that explains the consumer’s account status and activity. Tradeline information includes the names of lenders, the dates accounts were started, credit limits, types of accounts, balances owed, and payment histories.

Transaction Fee – A fee some lenders assess a borrower each time he or she draws on a credit line.

Trust Account — A special account used by a broker or real estate agent to safeguard funds for a buyer or seller.

Trust Deed — A document representing a three-party security arrangement that exchanges a property deed for security for the repayment of a loan. The owner is referred to as the trustor. A neutral third party (the trustee) is transferred the property and is responsible for liquidating the property if need needed. In this arrangement, the lender is known as the beneficiary. When the loan is re-paid, the trustee is directed by the beneficiary to issue a deed of reconveyance to the trustor, which terminates the trust deed lien.

Trustee – A person legally entrusted with property for the benefit of another individual or individuals. Also, to place a borrower’s finances (wages, assets, debts, and/or property) in the hands of a third party, in the interest of a creditor.

Truth-in-Lending Act – A United States law mandating standardized disclosure of credit terms.

Type – The category of credit agreement made with a creditor, i.e., an installment loan.

Quit Title — A legal action to remove an item that clouds a property title.

Quit Claim Deed — A deed of transfer that releases any title, interest, or claim enjoyed by the debtor.