Mortgage Glossary |Terms and Definitions Q-T

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Quitclaim Deed – A deed relinquishing all interest, title, or claim an owner has in a property. A quitclaim deed implies no warranty.

Real Estate Owned (REO) – Property a lender acquires as the result of foreclosure.

Real Property – Land and objects permanently attached to it, such as buildings and fences.

Redemption Period – The time allowed by law in some states during which mortgagors may buy back their foreclosed properties by paying the balance owed on their delinquent mortgages, interest, and fees.

Reinstatement – The curing of all loan defaults by a borrower to return it to its current status.

Reverse Mortgage – A loan for senior homeowners that uses a portion of the home’s equity as collateral.  The loan generally does not have to be repaid until the last surviving homeowner moves out of the property permanently or passes away.

Satisfaction of Mortgage – The recorded instrument the lender provides to evidence payment in full of the mortgage debt.

Second Mortgage – A mortgage that has rights subordinate to a first mortgage.

Secondary Mortgage Marketing – A process whereby lenders and investors buy and sell existing mortgages or mortgage-backed securities, thereby providing greater availability of funds for additional mortgage lending by banks, mortgage bankers and savings institutions.

Seller-Servicer – A term used by Fannie Mae and Freddie Mac for a mortgage banker or other entity that has met the requirements necessary to sell and service mortgages for Fannie Mae or Freddie Mac.

Servicing Agreement – A written agreement between an investor and mortgage servicer stipulating the rights and obligations of each party.

Servicing Income – Fees the investor pays the mortgage servicer for performing loan administration duties.

Subordination – The act of a party acknowledging by a written record that a debt is inferior to the interest of another in the same property. Subordination may apply not only to mortgages but also to leases, real estate rights and any other type of debt instrument.

Tax Lien – A claim against property for unpaid taxes.

Tax Sale – The sale of property by a taxing authority or an officer of the court acting on a judgment to satisfy the payment of delinquent taxes.

Term – The period of time between the commencement date and the termination date of a note, mortgage, legal document or other contracts.

Title – Written evidence of the right to or ownership of property. In the case of real estate, the documentary evidence of ownership is the title deed that specifies in whom the legal estate is vested and the history of ownership and transfers. The title may be acquired through purchase, inheritance, devise, gift or through foreclosure of a mortgage.

Title Search – An examination of public records, laws and court decisions to ensure that no one except the seller has a valid claim to the property and to disclose past and current facts regarding ownership of the subject property.

Trust Deed – The instrument given by a borrower (trustor) to a trustee vesting title to a property in the trustee’s name to ensure the borrower’s fulfillment of an obligation. A mortgage.