Real Estate Owned (REO)
Real Estate Owned is property acquired through foreclosure or deed-in-lieu of foreclosure.
Recovery
Distribution of borrower’s payment or other funds received to servicer as reimbursement for escrow, corporate, or other advances. Governed by the terms of the mortgage.
Reinstatement
The process of restoring an inactive mortgage to an active status. As part of the reinstatement, you must report and remit all interest due whether or not you received it from the borrower.
Reinstatement Period
A phase of the foreclosure process where the homeowner has an opportunity to stop the foreclosure by paying money that is owed to the lender.
Remaining Balance
The amount of principal that has not yet been repaid.
Repayment Plan
A homeowner promises to pay down past-due amounts on a mortgage over a specified time period while still making regular monthly payments.
RESPA
Real Estate Settlement Procedures Act; a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.
Returned-Check fee
Charge imposed for a check not honored by issuing bank due to insufficient funds, which may be limited by applicable state law.
Reversal
Removal of previously imposed charge or reapplication of previously credited payment. Generally involves two-step accounting process in which item is reversed off the account in one transaction and then reapplied to the account in a different way in another transaction.
Reverse Mortgage
A reverse mortgage allows senior homeowners 62 and older to access cash from their home equity AND stop paying monthly mortgage payments. Property tax and homeowners insurance payments are still required.
